Ripple Price Up Almost 100% – What drives the coin?

2018 Ripple Price Prediction is on its way to come true – in the past 24 hours, global markets saw Ripple Price Up Almost 100%. Will Ripple price rise further? What has caused Ripple price to surge?

15 December, AtoZForex We are halfway through December and cryptocurrency market won’t stop surprising us. Following the new record highs from Ethereum and Litecoin, this time, Ripple has shown its potential. This silent (until now) cryptocurrency has literally exploded during the current week.

Thanks to the major movement, the Ripple has now shifted to the third place on the market cap list of top cryptocurrencies, leaving Bitcoin Cash behind.

Ripple Price Up Almost 100% – What drives the coin?

As of the moment of writing, the market capitalization of Ripple stands at $31,216,157,874, while its price is now totaling at $0.807092.

Ripple Price Up Almost 100%

In the past 24 hours, the price of Ripple has increased almost 100%, while the volume of trading has accounted for US$6.44 billion.

What is Ripple?

Ripple is the cryptocurrency behind a new blockchain-based project, which the main purpose is to replace the SWIFT banking system that is used for the international transactions. The project looks into bringing the distributed ledger technology into the mainstream.

While the existing SWIFT banking system normally takes a few days for the money to reach the intended destination, Ripple aims to reduce this time to less than a day. Moreover, the technology also plans to cut the transaction costs by more than 30%.

Ripple is a distributed, yet centralized cryptocurrency. It does not utilize Proof of Work (PoW) or Proof of Stake (PoS). Instead, the XRP features an algorithm called consensus. It is not possible to mine Ripple, yet the transaction statistics indicate a steady average of 1 million a day. The majority of those represent the offer create function. As a matter of fact, these statistics have risen sharply this September after almost one year of decline.

Why did Ripple price rise so sharply?

There are several reasons for the price of XRP to surge so drastically.

Firstly, one of the key reasons for Ripple price rise is the news about banks in South Korea and Japan will be testing the cross-border payments utilizing Ripple system. The tests are scheduled to start today. The XRP tokens themselves will not be used in transactions, however.

The key aim behind the tests is to achieve the same-day worldwide fund transfers while simultaneously cutting costs by 30%. SBI Ripple Asia is a leader of a group of 61 Japanese banks that will be taking part in trials. As for the South Korean side, the Seoul-based Blockchain solutions provider will be responsible for the tests.

Another possible reason for the Ripple price to skyrocket is the mobile app payment powered by Ripple is to be presented live in just an hour from now on Japan’s “Nikkei Morning Plus” TV show at 5 p.m. ET.

Moreover, Ripple price rally could be fueled by the news that Ripple will be putting $55 billion of the existing XRP supply in escrow funds and create supply predictability of the tokens. Investors perceived this move as the consolidation of Ripple confidence in the market.

Finally, the fourth reason behind Ripple price surge is the deal it signed with Santander Bank and American Express to send international payments on its blockchain.

Will Ripple price rise further?

A reduction in available supply has fueled the interest in cryptocurrency along with other major drivers. As we saw Ripple price up almost 100%, it is still difficult to say what exactly is behind the rally. Some investors also speculate that Ripple might be added to Coinbase today.

In case everything works out good for Ripple and the global institutions will accept Ripple widely, we could see XRP price rise towards $2.00 level by the end of 2018.

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