To the surprise of many, the cryptocurrency market is currently performing well. The market cap has reached $217 billion— it hasn’t been this high since September 5. The market is clearly healthy at the moment. After such a long stretch of stagnation, this significant increase has left traders optimistic and excited. It is obviously too early to suggest that the bear market is over, but that doesn’t diminish from the fact that even a tiny rise is useful. Savvy and experienced traders will be taking advantage of this situation for the best. While most top coins have been rising, none are performing as well as XRP. The XRP bull run is both impressive and shocking.
XRP bull run surprises fans and speculators
The fact that XRP has managed to rise by such a staggering amount has raised the eyebrows of numerous crypto enthusiasts. In the space of just two days, XRP has risen by 70%. The sheer magnitude and steepness of this are enough to make people question the nature of the market. Of course, while most fluctuations do not have direct reasons behind them, ones as steep as this almost always do. The XRP bull run is being caused by the news that the Ripple product, xRapid, will be launched within the space of months. This news appeared to have stirred up the market and caused XRP’s ascent. xRapid has been viewed as a significant element of cryptocurrency’s future.
Both XRP and Ripple are controversial topics within the crypto community, so there are many who do not view this bull run as something positive. There are a vocal set of people who are ideologically opposed to Ripple and all of its products because Ripple is aimed more at businesspeople than the average consumer— Ripple’s target audience includes banks and other financial institutions. There is also the question of whether XRP is truly decentralized. While every cryptocurrency exerts some level of centralization (whether that is due to its mining habits or its developer’s methods of leadership), it is arguable that XRP is more centralized than its rivals and peers. There are people who strongly believe that XRP, Ripple, and by extension xRapid are ideological opponents to the cryptocurrency and blockchain industry. For them, this XRP bull run is not just a disappointment but a danger. In a time when cryptocurrency is facing one of its longest bear markets, one of the most controversial coins in the top ten rises beyond expectations. The very thought of this is uncomfortable for some.
What is the significance of xRapid?
It is obvious that the news of xRapid’s upcoming launch has lead to the XRP bull run, but why did it produce so much hype? xRapid is a tool which can be used to create and maintain low-cost liquidity on a mass scale. It is primarily aimed at financial institutions who are looking to reduce the monetary loss caused by transferring large sums of cash. xRapid is designed to streamline this process. It is also being designed for emerging markets, which are notorious for having high liquidity costs.
The hype for xRapid is due to the fact that if banking institutions were to fully adopt the software, then it would mean that mainstream, traditional financial organizations would be engaging in blockchain technology in a way which was only dreamt of a couple of years ago.
From a trading perspective, one distinction needs to be made. While news of xRapid’s release has caused the price of XRP to rise, it is not entirely clear whether xRapid itself will have much effect on price in the long-run. The debate as to what its significance will be in terms of XRP’s price is one which is purely speculative at the time and is beyond the scope of this discussion.
Other coins are performing well too
The XRP bull run may be impressive, but it is not the only coin increasing in price. Top coins such as BTC and ETH are also performing well. In the space of just hours, bitcoin has risen from $6,548 to $6,722. A 2% rise in mere hours is impressive. This is surprising considering how bitcoin has been moving (somewhat) steadily from September 14 to September 20.
Ether, on the other hand, has been moving in a volatile manner. From September 17 to 18, it dropped from $217 to $196, only to climb upwards again. However, from September 20 it has been rising rapidly. It has since moved from $209 to $229, a 9% rise.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.