XRP, the cryptocurrency associated with the payment protocol company Ripple, has seen an impressive 10% increase in value, momentarily becoming the top performer among the major cryptos. This surge comes even as Ripple seeks to distinguish itself from XRP despite the token being integral to some of its payment systems and the XRP Ledger.
The price spike saw XRP trading volumes double from $1 billion to $2 billion, with the token price peaking at 69 cents. This ascent briefly catapulted XRP above Binance Coin (BNB) in terms of market cap, positioning it as the fourth-largest cryptocurrency by this measure.
Analysts observed that the increase was primarily driven by spot trading activities rather than futures, as evidenced by a moderate $4.4 million in liquidations on XRP futures. This suggests that the price hike was not significantly influenced by high-leverage positions, which would have been indicated by larger liquidations.
The market’s movement appears to be reactive to recent positive developments for Ripple. Last week, Ripple garnered approvals to operate in new jurisdictions, expanding its global reach. The Dubai Financial Services Authority (DFSA) approved Ripple under its virtual asset framework, which allows companies within the Dubai International Financial Centre to offer XRP-based services. Furthermore, Ripple announced a partnership with the National Bank of Georgia to pilot a central bank digital currency (CBDC) project using Ripple’s platform.
This Ripple platform, which debuted in May, is already in use by governments in Hong Kong and Taiwan. It allows institutions to manage the entire life cycle of a CBDC, enabling capabilities such as minting, distribution, and even offline transactions, and supports both wholesale and retail CBDCs.
While Ripple has endeavored to maintain a separation from XRP to some degree, any advancements in its business operations or legal standing tend to influence XRP’s market performance. Traders and investors often view Ripple’s successes and the adoption of its services as positive indicators for XRP, reflecting their intertwined perceptions despite the company’s stance.
