The cryptocurrency associated with Ripple, XRP, has witnessed a remarkable upswing in value and trading activity, briefly eclipsing major cryptocurrencies such as Bitcoin, Ethereum, and Binance Coin (BNB). XRP’s value surged by more than 11%, while its trading volumes doubled from $1 billion to $2 billion. This surge temporarily positioned XRP as the fourth-largest cryptocurrency by market capitalization.
The primary catalyst behind this surge was spot trading activity, in contrast to futures trading. This is evident from the liquidation of $4.4 million worth of XRP futures contracts during this period. However, it’s important to note that Ripple’s recent advancements have also played a pivotal role in shaping these market dynamics.
Ripple has recently garnered approvals in both Georgia and Dubai, which likely contributed to XRP’s outstanding performance. The Dubai Financial Services Authority (DFSA) granted approval for XRP under its virtual assets framework. This endorsement allows companies operating within the Dubai International Financial Centre to provide services built upon XRP.
Furthermore, Ripple is collaborating with the National Bank of Georgia on a project involving the Digital Lari (GEL). This initiative is executed through Ripple’s platform for Central Bank Digital Currencies (CBDC), which supports the issuance, distribution, and offline transactions of wholesale and retail CBDCs. It’s noteworthy that this platform is already in use by the governments of Hong Kong and Taiwan.
Despite endeavors to distance itself from XRP, Ripple’s pivotal role in its payment systems and the XRP Ledger remains unmistakable. These recent developments illustrate how Ripple’s progress can directly influence the performance of XRP in the cryptocurrency market.