Ripple is continuing its upward movement in the new year and yesterday crossed the $3 mark to become 2nd largest crypto currency by value. Another important thing about rise of Ripple is that in last twelve months it has experienced an astronomical rise of over 49,000%! Let us delve into reasons why it is growing so rapidly.
Ripple Crosses $3
On Wednesday (3rd Jan), Ripple’s XRP reached $3.20, an all time high so far during afternoon trading. As of this writing, XRP has market capitalization of over $122 billion and is positioned strongly behind Bitcoin (which has a market capitalization of nearly $251 billion).
Another interesting fact about this rise is that in last week itself, it moved up by around 160%.
Reasons Behind Ripple’s Rise
Facilitates Instant Liquidity
At present international payments take couple of day to finish and that too at high expenditure. Banks really don’t like transactions which are generally of low value but have high volume since such transactions prove to be unprofitable as well as expensive for banks.
This is due to the fact that banks need to put in extra effort for moving the money and percentage cut they get is also not very high like they expect in other larger transactions.
This is where role of Ripple becomes valuable since it is striving to find a solution for this problem. The benefit of XRP is that enterprises can use it for receiving instant liquidity when high value transactions are involved, that too without the need to pay any fees.
— Ripple (@Ripple) January 3, 2018
Functions Like a Bridge