Over the last 24 hours, XRP has experienced an incredible rise, positioning it as the top-performing major cryptocurrency, while Ether and Bitcoin stayed steady. Even though Ripple has separated from the coin, traders of XRP are keeping a careful eye on this trend.
Why Has the Price of XRP Increased?
The conjecture and excitement surrounding possible enhancements to the Ripple ecosystem are responsible for the recent spike in XRP’s performance. Despite Ripple’s disassociation from XRP, traders continue to be on the lookout for anything that can affect the token’s value.
Prices for XRP jumped by about 11% on Monday, while trade volumes on Sunday went from $1 billion to $2 billion. With a market capitalization of 69 cents, XRP is now the fourth-largest cryptocurrency, surpassing even Binance Coin (BNB).
The recent increase in price and volume of trades indicate that investors are becoming more optimistic about XRP’s prospects. Remarkably, spot trading rather than liquidations was the main driver of XRP’s gains, suggesting that leverage was used responsibly.
The Rise of XRP in Dubai
The recent increases may have been a reaction from investors to two encouraging events for payments firm Ripple, even though there was no clear reason for them. Ripple obtained significant licenses to operate in Georgia and Dubai last week.
As part of its virtual assets regime, the Dubai Financial Services Authority (DFSA) has certified XRP, according to a statement from Ripple. This means that licensed businesses in the Dubai International Financial Center are now able to offer XRP as a component of their cryptocurrency services.
Furthermore, Ripple is using its central bank digital currency (CBDC) platform in partnership with the National Bank of Georgia on the Digital Lari (GEL) pilot project. The governments of Taiwan and Hong Kong have already embraced this platform, which offers a variety of CBDC services for both retail and wholesale use.
XRP Chart
In the past, Ripple has kept a distance from XRP, the cryptocurrency that powers the XRP Ledger network and some of its products. However, traders see a link between the two, and changes in Ripple’s license and legal actions obviously affect the price of XRP.