Ripple (XRP) Price Soars 84% in a Day

The unprecedented rise of Bitcoin is creating a ripple effect in the cryptocurrency world.

Ethereum, Litecoin and several other altcoins have all registered some price surge in recent days, but it’s Ripple which is showing signs of following in the footsteps of Bitcoin. Indeed, the altcoin, which is popular for utilizing the blockchain to create services for the banking world, surged 84% in the last 24 hours.

On Wednesday, the cryptocurrency opened the day at $0.27 before gaining traction in less than 24 hours. At the close of business Wednesday (PST), XRP’s price was standing at $0.51, representing a price surge of 84%. On Thursday, the crypto-coin was trading at $0.572099 according to Coinmarketcap.

The altcoin’s latest surge means that Ripple has eclipsed Litecoin to become the fourth largest cryptocurrency by market capitalization. Its value stands at $18 billion.

So, what is Ripple? It’s both a cryptocurrency and a payment network. Ripple runs a payment system named RippleNet, whose key goal is enhancing easy funds transfer. It’s popular for its speeds of transferring funds. Using the system, users can transfer funds to many other currencies and cryptocurrencies in only four seconds. Ripple works with financial institutions and banks, providing a fast and efficient system of transferring funds.

Why is Ripple on the rise?

Experts attribute XRP’s surge to the current developments in the cryptocurrency world. First, the recent launch by CBOE of the Bitcoin futures is generating a lot of activity around the Bitcoins and by extension, other altcoins. As a top-five altcoin, Ripple is also seeing some activity, translating to increased demand and the consequent surge in price.

Secondly, most people view XRP as a stable digital asset and are turning their focus on the crypto-coin, especially after the Bitcoin craze eases off.

Ripple’s fast speeds

According to Miguel Vias, who heads the XRP market at Ripple, most people exiting other cryptocurrencies are finding it an excellent option, given its renowned stability as a digital asset. He adds that slowed network speeds and soaring transaction fees on Bitcoin are fuelling RXP’s growth. Ripple boasts of super-fast speeds, which make it an attractive alternative for Bitcoin.

Ripple’s partnership with AMEX

The third catalyst fueling Ripple’s growth is its recent partnership with American Express. Over the year’s Ripple has made its name as the premier blockchain based firm with solutions for the mainstream financial services sector. Unlike most other cryptocurrencies which have systemically moved away from traditional banking, Ripple uses the blockchain technology to redefine how traditional banks and other financial institutions transfer money. Its partnership with AMEX, which seeks to solve liquidity problems associated with remittances, is creating some buzz around XRP.

Ripple intends to use blockchain based solutions to enhance quick remittances for Amex. In a statement, American Express Chief Information Officer Marc Gordon said his company is known for integrating new technologies into its systems. He added that the partnership marked the company’s first step on its blockchain journey, transforming its money transfer business across the globe.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Rajitha Ranasinghe via Flickr