XRP price spike has made it the top-performing major cryptocurrency in the past 24 hours, with Bitcoin and ether remaining steady during this time. XRP saw an increase of over 11% in prices before experiencing a slight retreat on Monday. Trading volumes also surged from $1 billion on Sunday to $2 billion. Currently, XRP is trading at 69 cents and has surpassed BNB to become the fourth-largest token by market capitalization.
Spot Trading Drives Gains in XRP
The gains in XRP were primarily driven by spot trading, as liquidations on XRP-tracked futures reached over $4.4 million. This suggests that the use of high leverage may have contributed to the price boost. There was no immediate catalyst for these gains on Monday. However, two positive developments for Ripple, the payments firm associated with XRP, may have influenced the market.
Ripple Receives Key Approvals in Georgia and Dubai
Last week, Ripple received key approvals to operate and offer services in Georgia and Dubai. The Dubai Financial Services Authority (DFSA) approved XRP under its virtual assets regime, allowing licensed firms in the Dubai International Financial Centre to incorporate and offer XRP to clients as part of their crypto services. Additionally, Ripple announced a collaboration with the National Bank of Georgia (NBG) on the Digital Lari (GEL) pilot project. This project will utilize Ripple’s central bank digital currency (CBDC) platform.
CBDC Platform Launched in May
The CBDC platform, which was launched in May, is already being used by the Hong Kong and Taiwan governments. It enables institutions to manage and customize the entire life cycle of the CBDC, including minting, distribution, redemption, and token burning. Central banks can issue both wholesale and retail CBDCs, facilitating offline transactions as well.
Impact of Ripple’s Progress on XRP Prices
While Ripple has historically maintained a distance from XRP, any progress in Ripple’s court cases or licenses has a clear impact on XRP prices, as traders perceive a connection between the two. The recent XRP price spike can be attributed to the positive developments for Ripple in Georgia and Dubai, which have likely influenced market sentiment.
Conclusion
The XRP price spike has positioned it as the top-performing major cryptocurrency in the past 24 hours, surpassing BNB to become the fourth-largest token by market capitalization. The gains were primarily driven by spot trading and the use of high leverage, with no immediate catalyst for these gains on Monday. However, Ripple’s recent key approvals in Georgia and Dubai have likely influenced the market, leading to the increase in XRP prices. As Ripple continues to make progress in its court cases and licenses, the connection between Ripple and XRP remains strong, impacting the prices of the cryptocurrency.
