- XRP surged in the past 24 hours, outperforming major cryptocurrencies, with trading volumes doubling.
- Liquidations on XRP futures exceeded $4.4 million, indicating potential high-leverage use in price gains.
- Ripple’s legal cases and licenses directly impact XRP prices, reflecting their interconnected nature.
In the last 24 hours, XRP experienced a significant surge, making it the top-performing major cryptocurrency, while bitcoin (BTC) and ether (ETH) remained relatively stable. Prices climbed by more than 11% before experiencing a slight pullback on Monday, with trading volumes increasing from $1 billion on Sunday to $2 billion, according to data from CoinGecko. At the time of this writing, XRP was trading at 69 cents, and it had surpassed BNB to become the fourth-largest token in terms of market capitalization.
The data indicates that the gains in XRP were primarily driven by spot trading activity, as liquidations on XRP-tracked futures exceeded $4.4 million. A substantial amount of liquidations could imply that the utilization of high leverage might have contributed to the price increase.
There was no immediate catalyst for the gains on Monday. Nevertheless, it’s possible that the bullish sentiment was influenced by two favorable developments for the payments company Ripple from the previous week. The company secured significant approvals to operate and provide services in both Georgia and Dubai.
Meanwhile, last Thursday, Ripple announced that the Dubai Financial Services Authority (DFSA) had granted approval for XRP under its virtual assets regime. This approval permits licensed firms within the Dubai International Financial Centre, a financial sandbox, to include XRP in their cryptocurrency services and offer it to their clients.
Additionally, on that same day, the company announced its collaboration with the National Bank of Georgia (NBG) on the Digital Lari (GEL) pilot project. This initiative will make use of Ripple’s central bank digital currency (CBDC) platform and “evaluate the practical use cases to gauge potential benefits for the public sector, businesses and retail users.”
The governments of Hong Kong and Taiwan have already adopted the Central Bank Digital Currency (CBDC) service, which was introduced in May. Institutions are able to utilize this platform to oversee and tailor the entire process of the CBDC, encompassing tasks such as creating, distributing, redeeming, and burning tokens.
Moreover, central banks have the capability to issue both wholesale and retail Central Bank Digital Currencies (CBDCs), which can facilitate offline transactions as well.
Ripple has traditionally kept a degree of separation from XRP, the cryptocurrency that underpins some of its products, and the XRP Ledger network. However, it’s evident that developments in Ripple’s legal cases and licensing matters have a direct influence on XRP prices, as traders perceive these two aspects as interconnected.
