Why is Ripple (Up 57% In 24 Hours, Up 138% In Week) Booming?
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.
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.
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.
😍 #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. See what other metrics will foreshadow where price movement is heading from here. https://t.co/oHasvM3nJC pic.twitter.com/R45tMNn0O1— Santiment (@santimentfeed) November 22, 2020
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.
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.
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.