The cryptocurrency market rebounded on Tuesday, with Ripple’s native XRP token leading the way higher. The so-called banker’s cryptocurrency rose by as much as 22% before giving back around half the gain in afternoon trading.
XRP/USD Price Levels
The value of XRP peaked at $1.44 Tuesday morning, according to pricing data provided by Barchart.com. At the time of writing, XRP/USD was worth $1.36 for a daily gain of 15%. At its current price, Ripple has a total market cap of $52 billion, placing it third among active cryptocurrencies. The market peaked in early January at $147 billion.
XRP has now gained more than 20% over the last five days, helping to offset huge losses through mid-January that dragged prices below $1.00.
With the exception of a few lesser known altcoins, Ripple was by far the biggest gainer on Tuesday when measured in percentage terms. The global cryptocurrency market was last valued at $534 billion after hitting a low of $490 billion earlier in the day.
South Korea Jitters Fade
Ripple and the broader market advanced after South Korea confirmed it was not banning cryptocurrency trading, only anonymous accounts. Beginning Jan. 30, the country’s Financial Services Commission will only permit trades from clients who have linked their digital wallets to their bank account.
The decision was in line with what we’ve been hearing for the last two months as regulators sought to cool excessive speculation in the market. Though tighter regulations are still possible, the announcement eased concerns about a sweeping ban on domestic cryptocurrency exchanges.
XRP is extremely popular in South Korea, with the won currency accounting for the largest share of total transactions. On Tuesday, South Korean exchanges processed roughly 60% of the daily turnover in XRP, according to data obtained by CoinMarketCap.
After a mostly quiet year, Ripple exploded in December to become the best-performing crypto of 2017. Though speculation played a big role in the surge, the coin was also aided by the announcement of major partnerships with global payment providers and regional banks. As recently as Jan. 11, Ripple announced it was partnering with global money transfer service MoneyGram on a pilot project aimed at boosting transfer speeds.
The cryptocurrency has also benefited from rumors that Coinbase may soon support XRP tokens, a move that would allow more people to purchase Ripple using fiat money. XRP’s inclusion on Coinbase could trigger unprecedented demand for the cryptocurrency, which unlike bitcoin and Ethereum, costs less than a cup of coffee.