Whales start buying XRP as the number of wallets holding the coin reached 10 million and it is increasing as we speak. The sudden gains recorded on the market brought some limelight to Ripple as the asset saw a price rise of more than 30% from $0.19 to $0.244 in the past two weeks and it again became the third most valuable crypto as we are reading more in our Ripple news.
XRP outpaced Tether and became the third most valuable asset in dollar term at $11 billion with a trading volume of $1.6 billion. There’s no clear reason behind the surge but analysts believe that it was because whales start buying XRP again and increase their stakes in the digital coin even as XRP reclaimed Tether’s position. Since July 18th, the number of wallets holding 1 million to 10 million XRP was increasing continuously and about 30 new whales joined the platform, representing a 3.7% increase in the short period of time.
Ripple’s director of product, Craig Wright, revealed a P2P payment platform that was built on XRP which brought up to the importance of the peer to peer payment platform. The economic historian Barry Eichengreen explained recently that cryptos should not be just considered for speculative reasons as leading crypto assets showed some characteristics of being tangible:
“I don’t think that thinking about crypto as speculative investments is really a long-term viable business model. Speculative investments have come and gone throughout history. Tulips came as a speculative investment and they went. [Digital assets] that provide actual tangible services like cross-border payments are the ones that are likely to have legs.”
Barry went on to explain why cryptos became the new digital gold and said:
“Gold doesn’t really have any intrinsic value. People [believe] it will hold its value because other people value it. There is, from that point-of-view, a parallel with cryptocurrencies. People pay actual U.S. dollars for it because they think other people will value it and pay actual U.S. dollars for it.”
Ripple played dual roles as a payment platform and a currency and it’s an open-source platform which is created to allow cheaper and faster transactions. XRP Was never intended to become a payment system at it has gained the attention of major banks across the world such as Barclays and Standard Chartered for international transactions across the world.
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