XRP Surges 11% in 24 Hours Amid Ripple Developments
In the volatile world of cryptocurrency trading, XRP often finds itself responding to Ripple’s corporate advancements, even as the company asserts a degree of separation from its native token. Over the past 24 hours, XRP has taken the lead among major cryptocurrencies, surpassing the stability of Bitcoin (BTC) and Ethereum (ETH).
During this period, XRP prices surged by more than 11%, although they later receded slightly. Trading volumes also saw a significant increase, reaching $2 billion from the previous day’s $1 billion, as reported by CoinGecko. At the time of writing, XRP was trading at 69 cents and had claimed the position of the fourth-largest token by market capitalization, overtaking Binance Coin (BNB).
Analyzing the data, it becomes apparent that the gains were primarily driven by spot trading, as futures liquidations related to XRP amounted to just over $4.4 million. Such a high liquidation figure suggests that leveraged trading might have played a role in driving up the token’s prices.
The surge in XRP prices occurred without an immediate catalyst on Monday. However, it is possible that bullish sentiment was influenced by two positive developments concerning Ripple from the previous week. Ripple announced it had secured significant approvals to offer its services in Georgia and Dubai.
Last Thursday, the Dubai Financial Services Authority (DFSA) granted approval for XRP under its virtual assets regulations, allowing licensed entities in the Dubai International Financial Centre to incorporate and provide XRP to their clients as part of their cryptocurrency services.
On the same day, Ripple revealed its partnership with the National Bank of Georgia (NBG) on the Digital Lari (GEL) pilot project, utilizing the firm’s central bank digital currency (CBDC) platform. This platform is already in use by the Hong Kong and Taiwan governments, enabling institutions to manage and customize the entire CBDC life cycle, including minting, distribution, redemption, and token burning. Central banks can issue both wholesale and retail CBDCs, which support offline transactions.
It’s worth noting that Ripple has historically maintained some distance from XRP, the token that powers several of its products and the XRP Ledger network. Nevertheless, any positive developments in Ripple’s legal battles or its licensing efforts undeniably impact XRP prices, as traders perceive a strong connection between the two.