Ripple (XRP) is on a roll. In the top 20, the third most valuable coin, is up roughly 10% according to data from coin trackers, outperforming Bitcoin (BTC) and Ethereum (ETH) by 2X and 3X, respectively. Ripple’s surge comes after a depressed 2019 where prices more than halved, sinking from highs of 37 cents to 17 cents at the tail end of 2019
Ripple (XRP) Market Performance
With the resurgence, XRP investors now have a shot in the arm and increasing their positions. While XRP price soars, the shift in sentiment is also reflected by the uptick in trading volumes.
In the last 24 hours, the number of XRP–related volumes rose by 132% to 10.5 billion XRP or $2.2 billion and the shift in confidence can be attributed to a couple of fundamental factors, chiefly:
1. Binance Futures Launches XRP/USDT Perpetual Contract with Up to 75x Leverage
Less than 36 hours after Binance took to the wires, announcing the launch of XRP/USDT Perpetual Contracts, XRP bulls were jolted into action, awakening from a lull and triggering market activity that saw price follow suit.
— Binance (@binance) January 6, 2020
Nonetheless, this was a bit of skepticism, with some saying the launch will be a cause for price manipulation that will bring prices down faster.
2. News of MoneyGram Transaction Breaking Volumes over the Holidays
MoneyGram is Ripple Inc.’s partner and for the latter’s $50 million investment, the money transfer company uses On-Demand Liquidity in their operations.
The company said it surpassed the previous transaction volumes in the last holiday period, rising 70% on a year-on-year basis within the US, and 120% year-on-year outside the US.
It’s CEO Alexander Holmes said:
“The success of our mobile app throughout the year, and especially during this holiday season, demonstrates the value consumers place not only on our user experience, but also on our global distribution network.”
This is a mark of confidence to would-be ODL users.
3. Ripple Inc Doesn’t Control XRP Prices, No Intention of Dumping
In the latest interview with CNN, Brad Garlinghouse, the CEO of Ripple Inc., said that it is not in their best interest to dump on investors and deliberately suppressing prices despite selling huge amounts of the coin.
— XRP 2020 (@XRP_2020) January 4, 2020
The $10 billion company is the major shareholder of XRP and as part of their decentralization effort, they have taken steps to lock up a majority of XRP in escrow.
The reassertion will likely quell complains from a section of the community concerned about Ripple Inc.’s liquidation.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich