Why is XRP's recent rally so fierce?
Recently, fans in the group have been paying attention to XRP, the "third millennium", and are curious about its fierce rise. After research, today I will make an analysis of XRP.
In the case of a good market before Thanksgiving, each currency has experienced a sharp rise. XRP, which ranks third in market value, has finally caught up with the pace and appeared on the list of gains.
Although the market value is third, XRP has been silent. No matter what the impact is, the smooth and smooth curve always makes you doubt life. However, the recent efforts have made XRP’s trading volume increase in a short period of time. According to CoinGecko data , the 24-hour trading volume exceeded $14 billion.
After yesterday’s market slump, most currencies have seen a decline. Although the decline this time is not as serious as “3.12”, as of 20:00 yesterday, the liquidation in the contract market exceeded 1.373 billion US dollars within 24 hours.
Well, let’s get down to business, let’s not talk about the Thanksgiving winter event yesterday, let’s analyze the reasons for the increase in XRP. First of all, we need to understand what XRP is and what it can do:
Ripple is a virtual currency issued by OpenCoin, called Ripple Credits, also known as XRP, and its Chinese name is Ripple.
Ripple is the world's first open payment network. Through this payment network, any currency can be transferred. It is easy and fast. The transaction confirmation is completed within a few seconds. The transaction fee is almost zero. There is no so-called cross-bank and cross-border payment. cost.
The Ripple open payment system is a virtual currency network (distributed P2P clearing network), a future electronic payment platform. In 2004, Ryan Fugger launched the first implementation of Ripple. Its goal is to build a decentralized virtual currency system that allows anyone to create their own currency. Ripple is currently developed, operated and maintained by OpenCoin (currently renamed RippleLabs).
The total issuance is 100 billion pieces. It is characterized by low transaction price and convenient transfer. It is still very attractive when it was born. However, after the cold winter of 2018, XRP has not made any big moves, and the price is also very stable. float.
After reading the introduction of XRP, let me explore the reasons for its sharp rise before Thanksgiving:
1. According to the contents of the Rippke Q3 report, the company purchased XRP worth USD 45.55 million for the first time in the third quarter, owning nearly half of the XRP TOKEN volume. Buybacks have also indeed played a role in price appreciation and supporting healthy markets.
2. Ripple Bank of America and the blockchain company Flare Networks plan to jointly release the new token Spark based on XRP Ledger in December. At that time, XRP investors can receive the Spark airdrop on December 12. And the airdrop plan has been supported by many exchanges.
3. Ripple has reached a strategic cooperation with the American banking giant PNC (the sixth largest bank in the United States), and PNC will use XRP as a payment product.
These three are the factors that I think are the most important to drive prices. There are other factors analyzed on the Internet, but I think the increase has little effect.
Generally, airdrops and more people use are the main impacts of the increase, but what cannot be ignored is that the Grayscale Foundation currently holds a total of 18.38 million USD in XRP, which is almost as high as the current currency price. the point.
And judging from this operation, the official pull is obvious, how could it be possible to surge hundreds of millions of trading volume within a few days, we still need to enter the market cautiously, and we must not enter the market blindly.
