As Ripple network’s native cryptocurrency, XRP rises another 10% as the investors speculate on the cause of its price nearly tripling within the last week.
The pioneering investors and experts indicate that Ripple’s astonishing rise of 155% within the past seven days to $0.69 from $0.27 is mostly associated with three substantial factors being brief squeeze, potential pilot xRapid test, and uprising social media interest.
Japan and Korea?
XRP’s trading volume during the last week has mostly came from Japan’s cryptocurrency exchange market, especially when the XRP’s volume and momentum were initially recovered.
Huge XRP volumes were recorded also by Coincheck, Bitbank, and Coinone; so, the banks in Japan and South Korea are now possible to keep their pilot xRapid tests, which is the Ripple’s liquidity product.
SBI Holdings, which is a substantial financial institution from Japan, has been one of the main banking partners of Ripple for many years. SBI has been leading the largest bank consortium for Ripple, involving Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, all of them actively testing xRapid and their products released, incorporating in the Ripple network.
As the biggest commercial bank, Woori Bank accomplished the second stage of international payment pilot testing with xRapid in March 2018. Two large financial institutions in the country, Woori Bank and Shinhan Bank conducted the tests as a part of a bigger partnership between Ripple and South Korean banks from December 2017.
According to the Ripple’s partnership director, Emi Yoshikawa:
“The Japan Bank Consortium’s pilot with Woori Bank and Shinhan Bank brings us closer to sending money in an important corridor. The use of RippleNet to send cross-border payments reinforces that financial institutions are ready to provide a modern payment experience and enable to the Internet of Value.”
Upon the announcement of a product launch on its blockchain network next month, the CEO of Ripple, Bradn Garlinghouse warrants a dozen more banks to be ready to adopt Ripple by the end of next year. Then, this resulted to a rising bank activities on the Ripple’s network, possibly contributing to its relevant price uprise.
Garlinghouse said at the Money 20/20 conference:
“I’ve publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool. You know, by the end of next year, I would certainly hope that we would see you know in the order of… dozens.”
Mike Novogratz Suggests a Brief Squeeze, as New Buyers Leading the Uprise
As the infamous investor and previous Fortress hedge fund manager, Novogratz reviewed the crypto market on CNBC Fast Money earlier in this week. He emphasized the institutionalization of the market thanks to the reliable custodian settlements and publicly reliable tools.
A significant part of the interview was on Bitcoin’s medium-term trend and the possibility of institutional entrances in the cryptocurrency industry within the upcoming months.
Regarding Ripple, Novogratz said that a brief squeeze affected its price to a limited extent, resulting in new investors with the price going higher.
“They’re building a great business. Full disclosure — we’re (Galaxy Digital) a 1% owner in Ripple the company, not the coin… They have a good story. When something jumps 3x, I don’t understand it. [Maybe] it’s a short squeeze to a degree, as I’m sure some people were short, but there were [likely] new buyers.”
Ripple’s value has risen by the three factors for more than 155% within seven days, exceeding Ethereum in terms of market valuation.
XRP has dropped by 0.8% within the last 24 hours, trading now as the third per its market cap. XRP’s market cap is $23.03B, having a 24-hour volume as $1.67B.