XRP price rises 91% in one month due to 3 fundamental factors

Over the past month, the price of XRP has risen 91% as the digital asset has finally found a spark and is now trying to catch up with Bitcoin (BTC) and Ether (ETH). The likely catalysts for the XRP rally are the rise of unique addresses, buybacks from Ripple, and the possibility of a new product release.

Unique XRP addresses increase

Chain data can be useful for representing general sentiment regarding a cryptocurrency as it accurately reflects the activity taking place in the blockchain.

In the case of XRP, the addresses interacting with XRP increased at the end of November. The trend intensified as the cryptocurrency rose 27% in one day on November 22.

Analysts from Santiment, an on-chain analytics firm, said the one-day increase in active addresses was the largest since May 1. he wrote:

“Ripple’s price skyrocketed + 27% today and the amount of unique addresses that transacted on the $ XRP network in a single day (24,408) was the highest production since May 1.”

Active addresses can increase along with the price for several reasons. First, the number of addresses that XRP accumulates could increase its peaks in value. Second, there may be a general spike in user activity on the blockchain.

Ripple buybacks could drive the XRP price up

During the third quarter of 2020, Ripple bought $ 45.5 million of XRP in a buyback program. The company described the initiative as a move to support healthy markets.

The sales summary listed in the third quarter 2020 report detailed total purchases of $ 45.5 million. In previous quarters, Ripple has not repurchased XRP. The report reads:

“As noted in the Q2 2020 XRP Markets Report, Ripple is buying – and may continue to buy – XRP to support healthy markets.”

A buyback can increase the buyer’s demand for an asset, be it stocks, commodities, or cryptocurrencies.

While $ 45.5 million may not be a large enough figure to have a significant impact on XRP’s value in the cryptocurrency exchange market, it may have supported market sentiment around the asset.

Ripple could launch a new service

In early November, Ripple Labs filed a trademark for a product called Paystring with the USPTO (US Patent and Trademark Office).

The trademark application describes Paystring as a product within the category of electronic financial services for receiving and sending remittances. He claims:

“The registration of the PAYSTRING trademark is intended to cover the categories of electronic financial services, that is, monetary services for the receipt and delivery of remittances and monetary gifts in fiat currencies and virtual currencies over a computer network and for the exchange of fiat currencies and virtual currencies on a computer network. “

The confluence of enthusiasm surrounding the release of a new product, XRP buybacks, and the growing streak shown in on-chain data could be the main factors behind XRP’s recent rally to 16 months high.

As a result, XRP was able to break through two multi-year intervals in the high time frame rankings. Notably, the weekly chart shows a clear breakout at a price level it hasn’t seen since November 2018.