If you are taken away only by the Gold-rush train of Bitcoin and its recent skyrocketing surge with new all-time highs every week you might be missing a lot what is happening around.
Ripple (XRP) a cryptocurrency with a centralized enterprise behind the curtains supporting its development and controlling where the token should be led just has experienced a very major climb upwards against the US Dollar – with a market cap of around $8.66 billion and a price (at the time of the writing) $0.2259.
In a trading and investing market – especially cryptocurrency, nowadays it is very difficult to pin-point down the reasons which conclude with this sort of spike, for example Ripple. For future references and help in investing-decision making purposes, down here we will try to explain this particular case.
What played the Role of the Pull-Up Lever for XRP/USD
Just before that, to have a quick heads up – Ripple while working together with financial services, banks and institutions wants to take down SWIFT (entity with a monopoly on border transfers) and disrupt its functionality. According to Thomas – Money should be fast sent and received like data and information now on a global scale.
(To trade cryptocurrency like Bitcoin, Ethereum, Ripple or Litecoin, try eToro.
So for the reasons why the catapult took place:
The enterprise Ripple is taking its profit and benefit from the XRP blockchain use of Banks and authorities in a world ranger of negotiation and deals. On the other side the big banks are winning transaction speed and security. This allows for effective intra-bank trading as financial institutions are finally able to escape the limitations of the current outdated infrastructure. On top of that digital assets have been sold to help and support banks being established on a lower price to give an opportunity for booming on the “new industry” and help Ripple with its legitimacy.
The Encouragement of cooperation between China and US for improvements of cryptocurrency via meetings that were held by Ripple and bankers, industry influencers, academics for a better virtual currency future. This as awaited was proportionally paired with a price surge while well known and respected figures of the industry took interest on the project giving it credibility. For ‘could-be’ of the same reason an official from the US State department – Anja Manuel was invited to the board of directors to increase support when it comes to China branching. Next to this, mid-October a meeting to be held by Ripple – Sir Tim Berners-Lee and Dr Ben Bernanke will be guests – one the same room!
Lastly but of the same importance – Asian, especially Korean Exchanges Record Breaking trading Volume in 24-hours. Around 40 percentage point of all trading in a global scale of XRP (Ripple) was paired with South Korean Won. Their movement from lets say Bitcoin Cash to Litecoin (the late famous BCH Sell-off) or any other occurrence is having significant impact overall on the market.
With the planned Blockchain improvements like Lightning Network for Litecoin, Ripple negotiations and so on, many investors are moving and diversifying their portfolio from the digital currency leader Bitcoin. More than ever now because of the potential upcoming fork happening in November. As for now and the longer term, Ripple is looking more promising than ever to be a choice for the future and a more reliable positioning for traders.