Xrp rallied more than 100 percent last week – here is what it may be due to

Xrp rallied more than 100 percent last week – here is what it may be due to.

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Tim Haldorsson

tim.haldorsson@trijo.co

Last week, multiple news stories about the cryptocurrency xrp got a lot of attention. After the stories came out, the price of xrp skyrocketed over 100 percent.

Xrp is the cryptocurrency on the company Ripples blockchain network. Today, xrp is the third biggest cryptocurrency with a market cap of $22.3 billion.

During last week, the price of xrp soared after multiple news stories about the currency circulated. The surge in price made xrp temporarily surpass ethereum as the second biggest cryptocurrency after bitcoin.

But why did xrp rally? Here are some events that may have contributed.

The launch of Xrapid payment service

Last week, it became known that Ripple’s payment service Xrapid is close to a launch. The payment service may be released as early as next month. Ripples service will allow banks and financial institutions to conduct cross-border transactions using xrp.

Donations using xrp

Last Friday, the San Francisco based company Coil announced that they are collaborating with Ripple. Together they will enable people who create value in form of videos, texts or images on major platforms such as Wikipedia, Youtube and Twitch, to receive donations directly in the form of xrp. The donations will be made using a web browser extension, CCN reports.

Large banks will use Ripplenet

The large American bank PNC has said that they will start using Ripplenet to be able to make near-instant international payments. The whole transaction is then stored on a blockchain.

Earlier in September, another major bank, the National Commercial Bank of Saudi Arabia, announced that they will start using the service Ripplenet. The use of Ripplenet will make it easier for banks to offer transparent and effective cross-border transactions for their customers, Ripple writes on their website.

Fear of missing an opportunity

It has also been speculated that so-called “fomo”, that is people’s fear of missing an investment opportunity, helped drive up the price. Sometimes when the price breaks technical support-levels, many short-term speculators will buy because they think the price will continue to go up. The purpose is that they think they will be able to sell for a higher price, CCN writes.

Last Monday, xrp had a total market cap of $11 billion. When the price of xrp peaked last Friday, the market cap was $30.6 billion. Now on Monday, the price for xrp has decreased to a total market cap of $23.3 billion, according to Coinmarketcap.

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