Ripple surge XRP

Why Ripple Surged 181% in Three Days

Luka
Luka Ripple

After a three months stagnation period, on September 18th, XRP rewarded its holders with a sudden surge of 40% in just under 5 hours when it reached a €0,28 mark. Of course, that rapid bullish movement triggered a buying wave, which, as visible on coinmarketcap.com, eventually led XRP to hit the three-months high price of €0,65. In this article an attempt is made to explain the phenomenon of the recent XRP's price surge through its connection with Ripple Labs.

181 Percent in Three Days

In three days, the price of Ripple surged by a staggering 181 percent. Looking from the speculators' point of view, three factors can be differentiated that may have affected the price of XRP in this way.

  • The upcoming xRapid launch
  • Recent partnerships
  • The long-term success of Ripple

 xRapid Launch

"Buy the rumor - sell the news" is one of the basic principles speculators act on when trading on the volatile cryptocurrency market.

xRapid Group Ripple
Although the date for the launch of Ripple's xRapid protocol has yet to be unveiled, Ripple's reputation tells us that there is a fair probability that one does not have to wait much longer until the rumor becomes the news.

xRapid is a financial transaction system which will make use of the XRP token to create a form of a liquidity pool for cross-border payments. It is claimed that this would make these payments much cheaper and much faster.

Sagar Sarbhai, the head of Regulatory Relations at Ripple, gave the interview to CNBC on September 17th, in which he announced that xRapid will see the light of day in "the next month or so".

That statement may have created a good amount of FOMO (Fear Of Missing Out) as investors rushed to acquire new bags of XRP.

A statement by Ripple's head of Regulatory Relations may have triggered a fear of missing out regarding an increased valuation due to the upcoming xRapid launch

Recent Partnerships

Ripple has a relatively solid number of real-world use cases and every new partnership deal signed deepens the trust that investors place with the project.

Ripple price
Two days after the mentioned CNBC interview, on September 19th, Ripple announced on their official website that they reached the partnership agreement with a top 10 U.S. bank, PNC BankPNC has 8 million customers and retail branches in 19 states throughout the USA, which was, obviously, accepted as one more reason to buy XRP as, on the day of the announcement, XRP started its surge towards the €0,65 price mark.

A recent partnership with PNC bank may have substantially increased Ripple's valuation

Ripple's Long-Term Success

Ripple seems to be relatively successful in implementing its technology by integrating its blockchain technology with some of the most important systems in the financial industry.

Some of the resulting partnerships with financial institutions are, indeed, formidable:

  • American Express
  • Banco Bilbao Vizcaya Argentaria (BBVA)
  • Canadian Imperial Bank of Commerce (CIBC)
  • CBW Bank
  • Mitsubishi UFJ Financial Group (MUFG)
    Ripple partnerships
  • Mizuho Financial Group (MHFG)
  • National Australia Bank (NAB)
  • National Bank of Abu Dhabi (NBAD)
  • ReiseBank
  • Royal Bank of Canada (RBC)
  • Santander
  • Shanghai Huarui Bank (SHRB)
  • Siam Commercial Bank (SCB)
  • Skandinaviska Enskilda Banken AB (SEB)
  • UBS
  • UniCredit Group

These partnerships and the overall business success may have caused speculators to keep their faith in XRP, which, in turn, stopped the price from declining further south, and made a solid basis for the recent growth.

Ripple ≠ XRP
Ripple
prides itself in being one of the blockchain projects with the most use cases in the industry. Its technology is implemented by more than a hundred financial institutions in more than 40 countries on six continents. The overall speed and security of the Ripple blockchain are indeed making historically slow financial transactions in the financial industry more efficient, and, reportedly, may save banks up to 70% on foreign exchange. However, the Ripple Labs company very much differentiated itself from the XRP cryptocurrency it originally issued. On their official website, Ripple Labs stated that, despite the fact that the company holds approximately 60% of the total number of XRP tokens, XRP is a completely independent digital asset. Nevertheless, the valuation of the XRP token seems to correlate highly with the valuation of the company.

What to Expect from a Top 3 Cryptocurrency?

Ripple price surge

XRP's price has been going through a correction since it reached a three-months top, and is currently valued significantly lower again.

Some wild predictions called for the price of XRP to reach the astronomical value of $589 by the end of the year, but virtually any fair investor would say that such a scenario is more than improbable.

However, looking at the XRP's all-time high of €3,26, it can be deduced that this cryptocurrency may have some growth potential if we witness the likes of the December 2017 / January 2018 bull market again.

From what we saw during the past few days, it can be concluded that minor surges can be caused by some positive flash news, but one such growth as XRP’s can only be a cumulative effect of hard work, successful business practice, high level of trust, and good looking future perspective.

Ripple claims to have all of the above, and, despite the company's differentiation with its own token, it seems that investors see these two entities as being well-connected.

Ripple versus XRP
XRP is Ripples native token about which Ripple Labs has stated it is a completely independent digital asset.