The XRP token of San Francisco-based Ripple Lab, Inc. has grown more than 40% in the last 24 hours and currently trades at $ 0.5305 according to CryptoCompare data. As covered by CryptoGlobe, the XRP price rose 13% on 20 September.
24-hour XRP price chart via CryptoCompare
There are several possible reasons, or factors, that may have contributed to the significant increase in the price of cryptocurrency. As pointed out by the Ripple company's technical manager, David Schwartz, there is a support ecosystem developed around the suite of financial products of the American company.
Web Monetization With XRP
Schwartz mentioned that another startup based in San Francisco, Coil, "is testing its product at a fixed rate of web monetization on Wikipedia with XRP". As described on the official website of Coil, users must register through their website and then pay a fixed monthly subscription fee.
A little like the Brave The browser aims to integrate payments with Basic Attention Token (BAT), when Coil registered users visit a "supported website", the company donates a certain amount of XRP deposited of users to the creator of the site "on their behalf".
According to a media post by Stefan Thomas, Coil's founder, his platform will introduce a more effective monetization system, so that content creators are equally compensated
"Exaggerated" market reaction
Despite this seemingly positive development for the XRP token, many have argued why people would like to start paying for content on the Internet, considering that most services and sources of information are free to use.
It seems that the market reaction can be "exaggerated", as noted by Tim Enneking, CEO of Crypto Asset Management. In addition, Ripple's xRapid product, which was designed to reduce transaction costs associated with cross-border transactions, has not yet been launched.
As already discussed on CryptoGlobe, Ripple has recently partnered with PNC Financial Services Group, one of the largest banks in the United States. In particular, PNC has also joined RippleNet, a decentralized global network of banks and payment service providers, and reportedly plans to use Ripple & x; 39; s xCurrent in production.
"Pumping", "Huge Dump" Exchanges In October
As described in Ripple & # 39; s xCurrent aims to be "a corporate software solution that allows banks to immediately regulate cross-border payments with end-to-end tracking. -end ". Other financial institutions that have started using the Ripple suite of products include the National Commercial Bank (NCB) of Saudi Arabia).
However, at this point, all of Ripple's financial products are in the early stages of development and adoption. So, it seems that traders and investors are reacting exaggeratedly to Ripple's recent announcements.
Commenting on the increase of the XRP token, the Twitter user XRPcryptoWolf warned that there could be "a huge dump" in October. He also said that the cryptocurrency trade was primarily responsible for pumping up the price of XRP, as they may consider Ripple's partnership with PNC and the upcoming (annual) Ripple SWELL conference as "good news".
This XRP pump makes more sense. These exchanges are pumping it up especially after the good news from the partnership with PNC Bank and the nearby Ripple SWELL conference. Do not be surprised by a large landfill closest to the beginning of October. Remember: buy the item sell the news. https://t.co/TxNWb1EOld
– XRPcryptowolf (@XRPcryptowolf) 20 September 2018
Other apparently positive developments for Ripple include his chief marketing strategist, Cory Johnson, who announces that the American firm of fintech collaborate with crypto exchange Bittrex, Bitso and Philippine-based Coins.ph to conduct cross-border payments with xRapid.
$ 5 trillion exchange market
As noted by several cryptographic analysts, it is largely "speculation" and "rumors" that are driving not only the XRP price, but also most other currencies digital. The Twitter user Rachel Lee seemed to have seized on the fly, and perhaps an improbable conclusion, that "Ripple strategically aimed at specific corridors aligned with [$[the] $ 5 trillion a day in the foreign exchange market."
A few months ago we reviewed the first collaborations #Ripple and found a model that led us to believe that Ripple was strategically directed to specific corridors aligned with a foreign exchange market of $ 5 trillion to day. Back #XRPthebase #xrpthestandard #xrp pic.twitter.com/bX7Ka1gvJC
– Rachel Lee (@ LeeR912) September 15, 2018
While Ripple could indeed having "working products", according to a recent InvestInBlockchain research report, these cross-border payment solutions are not at all close to traditional adoption as services like PayPal.
Regardless of whether Ripple's financial technology will be effective in the long-term remains to be seen. The level of competition now in the crypto industry has reached new heights, as Stellar (XLM), a 2014 branch of the Ripple protocol, also aims to provide international payment solutions.