The third most valuable cryptocurrency, Ripple, has increased its value in the last 24 hours by over 51%. XRP has now over 21 billion dollars market cap and is very close to overthrowing the world’s second-biggest cryptocurrency, Ethereum, and taking its place (ETH has currently market cap 23 billion dollars). The reason for such a surgical increase in price is probably due to a new feature that Ripple has announced this Monday to CNBC.com (see the article). This feature should help banks to speed up transactions while using Ripple.
For example, a bank might want to process a transaction from U.S. dollars to Indian rupees. According to Ripple, this process requires pre-funded local currency accounts in order to take place. With xRapid, Ripple claims that process would be sped up by converting the U.S. dollars into XRP tokens, to then move the money overseas, converting it back into Indian rupees at the other end.
Ripple has now partnerships with more than 120 banks and financial institution. Sagar Sarbhai, Head of Government & Regulatory Relations, APAC & Middle East at Ripple, said to CNBC the following: “I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production”. When it comes to cryptocurrencies and adoption of the blockchain technology, everything takes a lot of time. With this statement, it does, however, not seem so true. That is the probable cause of why ripply is up by over 51% in the last 24 hours. The expectations are currently very high so if you want to take advantage of this opportunity when trading or investing, be careful.
Update to 16:50 – Ripple just became the world’s second most valuable cryptocurrency in the world and has risen by over 75% in the last 24 hours
Update to 19:11 – After a correct in price, Ripple again slid to the third spot. The Ripple growth in the last 24 hours is as of now 54%.