Ripple Surged 70% to Become the Third Most Valuable Digital Currency After Bitcoin and Ethereum
It is the age of cryptocurrencies and ICOs and we have been hearing news about the surge in Bitcoin prices and the flexibility of Ethereum. But on August 22nd, a cryptocurrency named Ripple hogged all the headlines as it rose 44% in one day and 70% in a matter of few days. Many people may not have heard what Ripple is but it is soon likely to become one of the most used currencies in the financial world with many banks and other financial institutions adopting it and moving towards using the underlying technology of Ripple.
On a base note, the Ripple currency is used to send and receive payments. So, as can be seen, unlike many other cryptocurrencies, Ripple has a solid fundamental that is underlying it and the use is also something that is very important in the financial world. It can be used by individuals to exchange money irrespective of where their banks are and this helps to move the funds around, all across the world. It uses a technology called interledger protocol where the money never exchanges hands but both the send and the receiver has access to it through a secure digital channel, with all records of the transactions in it, and this makes it a very secure transaction channel.
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Ripple Aids Financial Payments
Since the technology is very secure and it helps the institutions involved to save a lot of money, many banks have begun to adopt this technology. By last count, 12 banks have been using this. Apart from the bank, Google has also been one of the first backers of Ripple as it realised the potential involved. Since then, we have seen many venture capitalists also beginning to back Ripple.
So from the above, it is pretty clear that Ripple is on pretty solid footing. The team working on the currency is also very well known and also highly respected as well. With such good fundamentals, it is only a matter of time before the fundamentals show through and the potential is realised and the currency begins to move up and this could probably be that time. The traders and the investors certainly believe so and that is why we have been seeing the prices surge over the last few days.
South Korea Loves Ripple
The main interest for buying Ripple has come from South Korea. Of late, this country has become the center of trading as far as cryptocurrencies are concerned and it has been the leading buyer whenever there has been a surge in the prices of bitcoin and ethereum and even in the case of Ripple, a major part of the volume came from this country. Another fundamental reason for the South Koreans to show interest in Ripple are rumors that a major bank in that country, Kakao Bank could be preparing to adopt Ripple technology. This has not yet been confirmed by the bank.
Expansion Into China
Another rumor that is doing the rounds is that Ripple may expand to China and may even target that country as part of its major push. This is understandable given the fact that the Ripple technology helps in secure financial transactions at low cost and hence would be very useful in countries with large and fragmented population. That is why China and India would be very interested in using this technology as banks and other financial institutions in these countries, which have a large of their citizens outside the country and spread far and wide in the world, could use the Ripple technology to handle financial payments at very low cost. There is also another rumor that says that Alibaba, the tech and e-commerce giant, could be using Ripple technology for handling payments. Nothing has been confirmed as yet but it does speak volumes of the technology and the potential involved in Ripple.
Considering these developments, it is likely that the Chinese may also start showing interest in Ripple and this could drive the prices even higher. All this shows the interest generated in Ripple at the moment and this could be the fundamental driver for the price rise, right now. And the move into new markets is only going to increase the demand for Ripple in the short and medium term and hence, it is no wonder that its trading volumes are surging.
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This article was originally posted on FX Empire