XRP, the cryptocurrency linked to Ripple, has experienced a significant surge in value and trading volumes, momentarily outperforming major cryptocurrencies such as Bitcoin, Ethereum, and Binance Coin (BNB). The value of XRP rose over 11%, with its trading volumes doubling from $1 billion to $2 billion. This surge briefly positioned XRP as the fourth-largest cryptocurrency by market capitalization.
The main driver behind this rise was spot trading activity, as opposed to futures trading. This is evidenced by the liquidation of $4.4 million worth of XRP futures contracts during this period. However, it's worth noting that Ripple's recent advancements have also played a role in influencing this market movement.
Ripple has recently received approvals in Georgia and Dubai which may have contributed to XRP's performance. The Dubai Financial Services Authority (DFSA) approved XRP under its virtual assets regime. This approval permits firms operating in the Dubai International Financial Centre to offer services based on XRP.
In addition to its success in Dubai, Ripple is collaborating with the National Bank of Georgia on a project involving Digital Lari (GEL). This project is being carried out via Ripple’s platform for Central Bank Digital Currencies (CBDC), which supports minting, distribution, and offline transactions for both wholesale and retail CBDCs. It's worth mentioning that this platform is already being utilized by the governments of Hong Kong and Taiwan.
Despite efforts to separate from XRP, Ripple's critical role in its payment systems and the XRP Ledger remains evident. These recent developments demonstrate how Ripple's progress can have a direct impact on the performance of XRP in the cryptocurrency market.
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