Want to know why Ripple (XRP) increased more than 9% in the past few days? Here we bring you five key points that will explain it.
At this time Ripple (XRP) is consolidated as one of the main cryptocurrencies present in the market. In the last week its price has risen and we must look for the reasons. Discover the details here, summarized in 5 key points to understand this increase in the value of XRP.
Five key points: Why did XRP go up?
First of all, we have the BTC and ETH settlements that took place last Sunday. Then we have the Grayscale investment surge in Ripple in just a matter of a week. Next, we have news that increases investor optimism.
1- BTC and ETH liquidations, how do they influence XRP?
We know that XRP is a crypto that works differently than BTC and ETH, but that it cannot help but be affected by what happens with these two assets.
If we look at the weekly XRP price chart, we will notice that it had an increase of more than 9%, and then relatively stabilized around US $ 0.30. This happened exactly one day after a wave of Bitcoin and Ethereum liquidations.
XRP weekly price chart, which shows the price increase it has had and that you can understand with our key points. Source: CoinMarketCap
This is obviously not the highest valuation that this cryptocurrency has had in its history, but it does represent an advance with respect to the beginning of July.
Investors have waited a long time for a positive assessment of XRP. This cryptocurrency, it is worth remembering, draws attention for having been present in the 2017 bullish momentum and not having recovered anything close to its maximum level since then.
2- Grayscale increases your investment in Ripple considerably
Something that may be cheering up investors is that there seems to be a kind of renewed institutional interest in this cryptocurrency. Last Friday, July 31, Grayscale, the world’s largest cryptocurrency fund manager, announced the expansion of XRP purchases.
Thus, the company now has $ 6.2 million in XRP, double the 3.1 million registered weeks before.
Other key points for the XRP surge in the past week include some important news and alliances that have taken place for a month. See them below.
3- Visa announces that it will accept XRP to make payments
When a cryptocurrency achieves important institutional and business alliances, investors increase their optimism. Normally, when this type of news comes to light, it is believed that the adoption of the asset is being promoted in a certain way.
Until now Visa had declared this option for those who owned Ethereum and Bitcoin only, so including XRP renews hopes in the cryptocurrency.
4- Launch of the Ripple purchase API
Following the same idea as agreed with Visa, now Ripple investors also have the XRP purchase API. This means that stores will now be able to accept XRP to sell any product, which can increase currency adoption.
5- Significant increase in XRP sales since April
With all this news piling up, it’s only natural that investment in XRP increased. More specifically, we can turn to Ripple’s quarterly report released on August 3, where they show that XRP token sales were 18.6 times higher during the second quarter of 2020 compared to first-quarter sales.
Optimistically, the company stated that its XRP sales totaled $ 32.55 million from April to June 2020. This compares to $ 1.75 million more than in the first quarter of the year. .
What is the reason for this increase in sales?
Ripple stated that sales were due to the company prioritizing free (OTC) sales over scheduled ones. They then added that this is part of the effort to provide increased XRP liquidity to RippleNet On-Demand Liquidity (ODL) customers.
With all this, it is understandable that Ripple is somewhat recovering the losses it has had after reaching just over US $ 3. However, this growth has slowed in the last few hours and is still far from its historical maximum.
What do the experts say?
Brad Garlinghouse, CEO of Ripple, explained that “People are losing confidence in fiat currencies and are looking for alternatives like cryptocurrencies” on their Twitter account yesterday. Garlinghouse added that traditional monetary systems are often as strong as people’s trust in them, and that fiat currencies are increasingly losing it.
Furthermore, an association of leading experts in the financial industry described a few days ago in a new report that XRP has all the features to replace traditional banking. This is the “Group of 30”.
According to them, Ripple offers companies of all sizes the ability to process transactions quickly and profitably across borders in real time using smart remittance technologies.
Ripple is known to already cooperate with known payment service providers such as MoneyGram or the largest European bank, Santander Bank. If this continues, XRP may eventually reach and exceed its all-time high.