Ripple's XRP token has enjoyed notable gains recently, rising close to 20% within 24 hours as it benefits from several positive news developments.
The digital token reached $1.08 at roughly 03:00 UTC (10 a.m. EST), roughly 19.85% higher than the same time the day before, according to CoinMarketCap.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining this price rally, analysts pointed to several factors, including banks' continual adoption of Ripple technologies and rumors that major digital currency exchange Coinbase will soon list the XRP token for trading.
These factors have combined to trigger a "speculative frenzy" of buying activity, said James Song, founder and CEO of blockchain startup ExsulCoin.
Rumors have been circulating for months that "Ripple's XRP will be listed on Coinbase," he emphasized.
Jeff Koyen, CEO of 360 Blockchain USA, also weighed in on the subject, stating that "Ripple's overnight pump may be based on real news, but I'm inclined to think it's the Coinbase rumor."
"If the Ripple rumor turns out to be true, I expect we'll see a proper bull run for XRP, maybe up to $2 if Bitcoin's price holds steady," he added.
Rising Adoption
Several analysts pointed to financial institutions' growing use of Ripple technologies when explaining XRP's recent gains.
"Ripple has been hard at work securing partnerships with financial institutions in India, Brazil, Singapore, and Canada," said Song.
Marouane Garcon, managing director of Amulet, a crypto-to-crypto derivatives platform that focuses on customer success and usability, emphasized the impact this is having on Ripple's digital token.
"Now that people are seeing that these massive banks are going to be utilizing XRP they realize how valuable XRP actually is," he said.
"XRP's platform is garnering tremendous interest in it's remittance payment process, from banks like Woori Bank to Money Service Business like MoneyGram and a test by the Federal Reserve," stated Charles Thorngren, CEO of Noble Alternative Investments.
Bullish Outlook
Thorngren emphasized the digital token's upside potential, stating that it has a "real opportunity to again become the 2nd largest Cryptocurrency by valuation."
"When you take all of this into consideration and then look at the price point for XRP it creates an obvious buying opportunity."
Chris Kline, Co-founder and COO at Bitcoin IRA, also provided a bullish take on the digital token.
"In the long term, the power of XRP to enhance remittance payments, transaction speeds, money velocity and so much more will drive this asset to substantial growth," he said.
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Source: Forbes