56 minutes. That’s the time it took for XRP price to surge 20 percent inevitably causing a frenzy. Though there has been particular news about a Coinbase listing for example, historically, rumors of Coinbase listings trigger swings. Decisive conclusions from the US Securities and Exchange Commission (SEC) or a confirmed launch of xRapid also played a part resulting in an injection of the much-needed capital yanking XRP prices from bear grasp.
At the time of press, XRP which has cemented itself as the third most valuable cryptocurrency in the world, is trading above 30 cents after surging 20 percent yesterday. At that market price, its market capitalization expanded by $1 billion and currently trading with a $13.2 billion market cap. By all accounts, these sharp spikes are nothing new in the crypto space and conjures memories of Q3 and 4 of 2017 where it was typical for digital assets to add 30 percent on average every trading day.
While this overly impressive more so for investors who have had to contend with sharp declines in their portfolio, yesterday’s rise has attracted doubt with some commentators claiming that this expansion isn’t supported by strong fundamentals. Conversely, some are dismissive and optimistic that the market is finally bottoming out. Nevertheless, these are three reasons why XRP investors should remain ecstatic going forward:
Expected Launch of xRapid
Though XRP and Ripple are two distinct entities, the latter’s products relies of the RTXP ledger and XRP for perfect functionality. By definition, xRapid which is still in testing and scarce of development information, is a payment processing solution that makes use of XRP. In this arrangement, XRP acts as a liquidity tool needed for instantaneous cross border settlement which in turn reduces the cost of operation and latency. On Sep 17, Sagar Sarbhai, the head of Regulatory Relations at Ripple said in an interview with CNBC that the company was planning to launch xRapid in the next month or so. While it’s yet to be confirmed, it expectedly drew demand as investors rushed in during a FOMO moment.
Solid Plans and Visionary Leaders
Undoubtedly, Ripple executives command the media and their wild fire comments often rouse discussions. Straight from Brad Garlinghouse, the CEO of Ripple to Senior VP of Product and Customer Success, their position whether on the defensive or offensive remains clear and firm. A stand out in recent times are the comments from Brad that Ripple and XRP would be a mainstay by 2019. Before then, SVP of Customer Success, Marcus Treacher, said the platform was planning to merge xCurrent, xVia and xRapid into one wholesome product called Convergence. While he did retract his statement, it’s clear that the company has a long-term plan to further improve customer user experience and efficiency.
The Asian Offensive
After forging an alliance with SBI, creating SBI Ripple Asia, the output has been beneficial. That’s not only for the company via increase air time but for the population within the expansive Asia-Pacific. By further opening an exchange, VC Trade with XRP as base, there is the benefit of speed and exposure to a capital injection from Japan. Besides, SBI has also partnered with Siam Commercial Bank of Thailand. This did allow direct and instantaneous remittance of funds from Thai nationals living and working in Japan. That is aside pilot programs testing xRapid, India ambitions, recent SAMA testing of xCurrent, and the announcement that the $120 billion Saudi Arabia Bank NCB will be joining the Ripple Net by November this year.
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