This is not the "flippening" we were waiting for, the day the ether definitely exceeds bitcoin market capitalization. Bitcoin remains on top of the cryptographic rankings, but for the first time since the beginning of January, there is a new n. 2 in the city. His name is XRP.
Yes, XRP and ether have traded positions several times in the last hours due to small price fluctuations. But over a 24-hour period (today 21 September), XRP, the digital asset owned and controlled by Ripple, has increased by over 50%, reaching a peak of $ 0.77 per unit. The South Korean has won accounts for over a fifth of the global XRP trading volume, which suggests that the demand may be behind a portion of the increase.
On social media, cryptocurrency enthusiasts echoed the rebirth of XRP.
Why does XRP increase?
It is difficult to determine a specific reason for the rise of XRP. On September 17, Ripple exec Sagar Sarbhai told CNBC that it was "very confident" that the company's xRapid system could be part of a live product within the next month, which may have triggered some speculative trade (you know what they say, "Buy the item, sell the news"). Then, on September 19, Ripple announced that PNC Treasury Management had joined RippleNet, the network of banks and payment service providers of the company.
What is XRP?
The XRP is often described as a "bridge currency" on the xRapid platform. This means that the XRP would serve as an intermediate unit of account during currency conversions. Instead of converting dollars directly into euros, a user could first convert their dollars into XRP and then convert their XRP into euros. While Ripple states that this digital resource would allow faster and more reliable international transactions, it is not obvious how the company would avoid the volatility and liquidity challenges associated with the XRP itself.
Naturally, XRP also remains at the center of a legal action class, as some buyers argue that the sale of Ripple's digital asset constituted the sale of unrecorded securities. Regardless, with the Ripple's Swell conference coming up next month, the company will appreciate the XRP price spike, regardless of its longevity. And, if XRP continues this performance, Ripple may want to consider changing the name of his conference in "Tsunami".