The price of XRP, the market’s sixth-largest cryptocurrency, has been on the rise since Monday. This upward trend is probably being fueled by the price fluctuations of Bitcoin and the general bullish market trend.
As a result, the market cap of XRP has also grown from $20 billion to a fresh year high of $25 billion, further reinforcing its upward trend.
XRP is currently trading at $0.470, reaching close to the $0.50 level after its breakout to the $0.490 level. It reflects an increase of more than 27% over the past week, which is consistent with the increasing trend of other significant cryptocurrencies.
Unexpectedly rising 27%, the price of XRP now leads both Bitcoin and Ethereum in daily gains. According to the RSI indicator, the XRP and Bitcoin recovery trend may continue shortly, indicating that XRP may continue to gain ground on Bitcoin in the future.
What might be the drivers behind the rise in XRP price recently? Continue reading to learn about the facts that fuel the bullish trend in XRP.
Adoption Of XRPL Decentralised Blockchain Technology
The decentralized blockchain technology known as the XRP Ledger (XRPL) has been crucial to XRP’s recent upward trajectory. It is supported by the fintech startup Ripple.
According to a recent study by the market research company Messari, the XRPL intends to provide a digital payment infrastructure not only for individuals but also for established entities like central banks. It is true, despite external pressure from the US regulatory authorities over the potential classification of XRP as a security.
Since February, there has been a noticeable increase in the use of XRPL, which is thought to be a factor in the price increase of XRP. As more organizations and individuals use the XRPL for cross-currency transactions and other use cases, this increased use may be increasing demand for the token.
The rise in XRP demand brought on by the XRPL’s wider acceptance may be a significant factor in pushing the price above $0.50. The price of XRP is expected to rise as more purchasers battle for a limited amount of currency on the market.
Moreover, investors may become increasingly interested in investing in XRP as awareness of XRPL’s ability to disrupt the global financial system rises, which might further support its price growth.
The research company also highlights the importance of the Proof-of-Association (PoA) consensus method used by the XRPL in the larger financial sector. This algorithm is an essential part of the XRPL architecture since it verifies transactions and guarantees network security.
The PoA consensus algorithm is particularly important for the significant use case of the XRPL, which is to enable cross-currency transactions. Transaction speed is essential to guarantee timely and economical settlement.
According to Messari, a free and open-sourced transaction processing and validation program, rippled, is used by all XRPL nodes. Validators who propose and vote on transactions must possess a certain quantity of XRP to take part in the consensus procedure.
They claim that the network’s efficiency and security are ensured by the increased engagement of validators. As more validators buy XRP as collateral, the price of the token rises. A surge in the price of XRP can arise from the consequent growth in demand.
According to Messari’s report, the XRPL has several functionalities, including issued Currencies (IOUs) which support a variety of assets, Authorized Trust Lines that let issuers control which wallet can interact with their tokens, and a Central Limit Order Book which allows low-liquidity IOUs trading.
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XRP Becoming A Primary Partner Of A Key UK Non-Profit Organization
Sandy Young, the managing director of XRP for the UK and Europe, has revealed that the cryptocurrency startup has teamed with the Great Ormond Street Hospital Children’s Charity (GOSH), the largest non-profit organization that specializes in aiding young cancer patients.
The blockchain industry powerhouse is utilizing its resources to help sick children and their families, the Ripple community is thrilled about this. Significantly, the first topic of discussion is generating millions of pounds to support GOSH’s cancer treatment for UK children. Here, XRP is expected to offer its top level of service.
XRP’s Expected Victory Over The Lawsuit With SEC
Investors’ bets on XRP winning its legal battle with the US Securities and Exchange Commission (SEC) are another reason contributing to the recent bull run for the price of the cryptocurrency.
On March 6, District Judge Aalisa Torres decided motions submitted by both parties. The judge ignored some expert witness testimony from the impending summary judgment in her decision. Judge Torres emphasized that there was no obvious winner or loser in the court battle even though she partially authorized and denied the motions.
According to a report in January, Brad Garlinghouse, CEO of XRP, predicted that the lawsuit would be resolved in the coming single-digit months.
Significantly, the XRP community also relies on the Garlinghouse assurance that the business is in good financial standing from March 12. This happened after the collapse of Silicon Valley Bank (SVB), to which XRP has exposure.
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