The price of XRP has surged in the past few days. The rally began on 18th September after the news broke of
XRP touched a high point of $0.76 today (21st September) meaning the market cap rose above $30 billion USD. At the moment, Ethereum’s market cap stands at $23.3 billion.
The price of XRP has since decreased to $0.58 meaning the market cap is currently valued at $22.3 billion, meaning it’s now fallen back into third place.
On 18th September, the XRP price was $0.27, in just 3 days it’s jumped 114% to it’s current price making the XRP price the most significant gain of the year for any of the top 10 cryptocurrencies. The price hasn’t been this high since June 2018.
What is driving the XRP price?
One of the most significant drivers of the XRP price is likely to be the news from Ripple, the company whom created the cryptocurrency XRP are almost ready to launch their newest product, Xrapid.
Xrapid is a product that’s been in development for a while now and has had the community very excited anticipating the launch.
The project enables company’s to minimize their liquidity costs:
xRapid is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience. Because payments into emerging markets often require pre-funded local currency accounts around the world, liquidity costs are high. xRapid dramatically lowers the capital requirements for liquidity.
In an interview with CNBC, Sagar Sarbhai, Ripple’s head of regulatory relations for Asia-Pacific and the Middle East, said he was hopeful that xRapid will be launching within the month.
The project will be utilising XRP which could explain the recent rise in demand for XRP:
xRapid uniquely uses a digital asset, XRP, to offer on-demand liquidity, which dramatically lowers costs while enabling real-time payments in emerging markets. Built for enterprise use, XRP offers banks and payment providers a highly efficient, scalable, reliable liquidity option to service cross-border payments.
The excitement around the product is huge and it’s obvious to see why. Ripple have partnered with large financial institutions such as Santander and American Express who will be using the services of Xrapid. These large partnerships give a huge potential for utilisation of the XRP token and speculative investors are hoping the recent price increases are just the beginning.
Could this recent bull run set the stage for another cryptocurrency bull run like we saw around the same time in late 2017?