Over the past 24 hours, Monero and Ripple Prices surged significantly. What has caused the value of altcoins to appreciate? Will the gains stay or should we expect the correction soon?
28 December, AtoZForex – The prices of Ripple and Monero have surged over the past 24 hours. At the same time, the value of other cryptocurrencies, such as Bitcoin and Ethereum, has dropped by around 5 percent.
Monero and Ripple Prices skyrocket: What fuels these coins?
Ripple and Monero prices are skyrocketing thanks to the high demand from the South Korean market. The value of these cryptocurrencies has increased significantly due to the fact that almost every coin is trading with high premiums in the local markets. Moreover, Monero and Ripple are highly concentrated in the South Korean market in terms of daily trading volume.
In fact, Bithumb has more than 35 percent of the market share of both Monero and Ripple. Other exchanges, such as Coinone and Korbit, account for 10 percent of global Ripple trading volume.
As of the moment, on Bithumb and Korbit, Ripple is changing hands at around $ 1.54, while the global average price of XRP stands at $1.36. In the same way, Monero is being traded at $446.10, with the average global price being $376.99.
The high premiums in South Korea are caused by the lack of supply. Due to these premiums, cryptocurrencies with great trading volumes tend to spike by larger margins. They also decline at a slower rate in comparison to other cryptocoins.
Why are premiums so high?
For example, Ripple has barely dropped on December 23, the day, when the whole crypto market dipped in value. That time, Bitcoin, Bitcoin Cash, and Ethereum have posted over 30 percent drop in prices. For comparison reasons, Ripple has declined only 3 percent, trading above $1.
South Korean cryptocurrency exchanges remain very cautious regarding cryptocoins featured on the platforms. One of the cryptocurrencies, Qtum, has undergone a thorough process of market evaluation before the Bithumb has decided to integrate the coin.
As a matter of fact, Bithumb, Coinone, and Korbit, only support some selected cryptos. Usually, these coins are traded with high premiums. The appetite for cryptocurrencies in South Korea is relatively high in comparison to the US or Japan. This is due to the tendency of traders to go all-in on a trending asset.
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