XRP has surged in the last 24 hours, establishing itself as the leading major cryptocurrency performer, while both bitcoin (BTC) and ether (ETH) remained stable.
The price exhibited a noteworthy increase of more than 11% before experiencing a slight retreat on Monday. CoinGecko’s data reveals a spike in trading volumes from $1 billion on Sunday to $2 billion. At the time of this writing, XRP was trading at 69 cents, and it had ascended to the position of the fourth-largest token by market capitalization, displacing Binance Coin (BNB).
The data indicates that the gains were predominantly driven by spot trading activity, with liquidations on XRP-tracked futures surpassing $4.4 million. The substantial liquidation amount might suggest that the use of high leverage played a role in boosting prices.
Although no immediate catalyst for these gains was evident on Monday, it’s possible that bulls reacted to two positive developments for the payments company Ripple from the previous week. Ripple secured crucial approvals to operate and provide services in Georgia and Dubai.
Ripple announced last Thursday that the Dubai Financial Services Authority (DFSA) had granted approval for XRP under its virtual assets regime, enabling licensed firms in the Dubai International Financial Centre to integrate and offer XRP to their clients as part of their cryptocurrency services.
Simultaneously, the company announced its collaboration with the National Bank of Georgia (NBG) on the Digital Lari (GEL) pilot project. This initiative will leverage the firm’s central bank digital currency (CBDC) platform.
Already in operation with the governments of Hong Kong and Taiwan since its launch in May, the CBDC service offers institutions the capability to oversee and tailor the complete life cycle of CBDC. This encompasses functions such as minting, distribution, redemption, and token burning.
Central banks have the capacity to issue both wholesale and retail CBDCs, which enable offline transactions as well.
Ripple has historically maintained a distance from XRP, the token that powers some of its products and the XRP Ledger network. But any progress in Ripple’s court cases, or licenses, clearly impacts XRP prices as traders consider the two related.
