Why is Ripple (Up 57% In 24 Hours, Up 138% In Week) Booming?

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Last Updated on 24 November 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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CEO of Ripple Labs Brad Garlinghouse must be a highly popular man in Silicon Valley once again now that his cryptocoin XRP seems to be on fire this week. Together with Bitcoin’s institutional FOMO rise of the past few weeks, other coins have also been gaining notably, among them Litecoin, Ethereum, Tether, Cardano and Ripple (and many others). There are a few reasons for XRP’s booming price level. Let’s have a look.

Advertentie.

Upcoming Flare Network airdrop

Flare Network announced that they will airdrop their SPARK tokens to XRP holders. For every XRP token you hold, you will receive approximately 1 SPARK token. 45 billion SPARK tokens will be airdropped and the snapshot will be taken on the 12th of December at 00:00 GMT. The distribution of the tokens will occur in Q1 2021. Many people buy Ripple (XRP) to get the free SPARK tokens, because token value is expected to be around $0,01. Make sure that your wallet or exchange supports this airdrop to be eligible.

Unique addresses

Wallet addresses containing XRP are on the rise as of late, and even the number of crypto holders with more than a million of XRP coins in their wallet are reaching an all time high.

It comes as institutional investors are forced to diversify and thus spread their risk of investing in the cryptosphere. As Ripple Labs is a known company from Silicon Valley with a charismatic CEO, it is clear that venture capital money and new investors flock to XRP.

Santiment, an on-chain analysis firm, declared:

Ripple’s price skyrocketed +27% today, and the amount of unique addresses transacting on the $XRP network in a single day (24,408) was the highest output since May 1st.

Buybacks

Like other major US companies with a hefty stack of cash on the side, Ripple Labs it itself buying back its own coins as the price rises. Although the buybacks are not enormous, the constant reminder that the company is repurchasing and investing it its own coins, boosts the trust of investors.

Gaming industry

Through a partnership established in 2019 with gaming startup Forte, Ripple has seen positive interest from that industry department as of late as well as investors understood that new games will come with in-game purchases in XRP.

In a press release last week, the company announced:

New partnerships with Gallium Studios, Monster Ideas, Penrose, and GC Turbo that bring together blockchain-based economic technology and game and digital entertainment pioneers. Each developer will use Forte’s technology in an upcoming game experience to introduce new business models rooted in fostering and rewarding player communities.