The Ripple XRP token rose yesterday more than 50%, becoming the second largest cryptocurrency in the world by stock market capitalization.
The digital currency rose to $ 2.20, rising more than 50% in 24 hours, according to CoinMarketCap .
One of the main reasons attributed to the increase in the price of Ripple in the last month is the proof of the Ripple technology on the part of some Japanese and South Korean banks. This news in itself has fueled a strong buying interest among investors and daily volumes are reaching record levels.
Bitcoin remains one of the largest cryptocurrencies by market capitalization, contributing 41.5% of the overall valuation of the encrypted market, while Ripple, for its part, contributes 12.4% and Ethereum, which now ranks third, contributes 12.3%.
The XRP token has had a month of sales success, appreciating more than 700% since it began in December with a price of approximately $ 0.25, as shown by additional figures from CoinMarketCap.
A great month for Ripple
The digital currency has enjoyed several short rallies this month.
One example is the strong increase experienced by XRP around mid-December, where it increased more than 90% in 24 hours , reaching approximately $ 0.87 as investors responded to the news that Ripple completed its cryptographic blocking of tokens.
The cryptocurrency enjoyed another short rally about a week later, rising to $ 1.24, as it benefited from sustained momentum and robust Asian trade.
The price of XRP approached $ 1.50 earlier this week, pushing up the news that SBI Ripple Asia, based in Tokyo, announced a consortium created to explore how distributed accounting technology could be used for credit cards. payment.
Changing the priorities of investors
More recently, analysts have focused on the changing sentiment of investors, emphasizing that XRP has benefited from these changes.
Originally, many of those who defended cryptocurrencies favored these digital assets because of their decentralized nature, said Marius Rupsys, a digital currency trader.
These market participants were disgusted with the centralized nature of Ripple, opting for the exchange of digital currencies that were decentralized, he said.
However, the size of the digital currency market has increased this year, rising from approximately $ 17.7 billion to more than $ 600 billion this month , according to figures from CoinMarketCap.
According to Rupsys, the new investors that flood the market are more interested in the performance they could generate than in the decentralization and immutability that many libertarians would value.
This has provided significant tailwinds for Ripple, which in turn has increased considerably in price.
Ripple is a blockchain startup based in San Francisco that makes use of blockchain technology to develop a payment network for banks, financial institutions and other digital asset pools. All participants in the network will use Ripple’s own digital currency known as XRP for transactions.
The test results show that compared to other cryptocurrencies, Ripple offers the fastest transaction time , which is only four seconds. While, on the other hand, the Ethereum network takes about two minutes to complete a transaction and Bitcoin takes more than half an hour as mentioned on the Ripple website.
In addition, the Ripple network is robust enough to handle scalability problems with ease. As the company claims, XRP can handle more than 1500 transactions per second , while Bitcoin offers between 3 and 6 transactions per second, and Ethereum offers about 15 transactions per second. According to the company, XRP can scale to reach the 50,000 transactions that are processed for example with the Visa protocol.
Currently, more than 100 financial institutions are using the Ripple network.
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