At the beginning of November, Ripple – which has the native coin XRP – spiked to become one of the top-performing crypto coins in the market.
This could have a significant impact on the world of cryptocurrency, signalling the start of a new era as crypto users prepare to exit the bear market and return to the bull.
Below, we’ll look into what has happened, as well as whether now is a good time to invest.
XRP’s Rise: As It Happened
On November 5th, it was reported that XRP had risen by over 11%, with trading volumes increasing from $1 billion to $2 billion in just over 24 hours.
This led to it replacing BNB as the fourth-largest token in the world. According to the data, these gains came from liquidation on the tokens tracked futures – which breached over $4.4 million – leading to high leverage and boosted prices across the board.
Prices since the 5th have been fluctuating, but steady at number four – click on Cryptosoho to check the price in real-time.
What Led To XRP’s Success?
There could be several factors behind this spike, but one of the most significant would be the money transmitter licences that the platform received from US jurisdictions and the Monetary Authority of Singapore.
These allowed Ripple to expand its products and services across 70 payout markets, meaning customers could access 100% payout coverage and liquidity options, ultimately boosting XRP’s utility higher than ever before.
Bulls were also behind the drive, having reacted positively to Ripple’s approvals to operate in Dubai and Georgia – licenced firms were approved by the Dubai Financial Centre and the National Bank of Georgia.
Coins In The Running
While XRP spiked, other top crypto performers, such as BTC and ETH, remained steady. SOL dropped by 5% as the FTX estate moved around $750,000 worth to Binance and Kraken, while Binance has seen a price spike of around 20% over the last three weeks. As of today, the top five crypto tokens are:
- Bitcoin
- Ethereum
- Binance
- Ripple
- Solana
How Long Will It Continue?
As ever with crypto, it is hard to predict how long this spike will last, or if the price of XRP will increase any further over the next few months. One of the predictions you could make, however, is that this may signal the coming end of the crypto winter.
For nearly two years, the crypto market has been hovering far below the prices that it was once capable of – BTC was worth nearly $68,000 in November 2021 but is now scratching underneath the surface of $30,000.
But over the last few months, fluctuations have been the opposite of damaging, with a case in point being XRP’s success and Binance’s continued surge.
You cannot point to two coins as a sign of the future, but the reigning atmosphere over the last few months has been positive, and these small instances could prove to have bigger consequences.
Is It A Good Time To Invest?
So is it a good time to invest in crypto, if you haven’t already? Again, this is hard to say. One month ago, a prominent crypto journalist stated that XRP was still a speculative investment, with a real possibility that it could go to zero.
While they were not wrong – there was a real possibility that XRP would fail in its legal cases – XRP saw success toward the end of October, use cases have grown, and the price has risen drastically. It’s hard to predict anything in the cryptocurrency market, but good decisions can be made if enough research has gone into them.
If you are planning to invest in XRP or any crypto token, it’s important to read into the market and analyse the various crypto tips and tactics you can use to be as risk-averse as possible. This could be a very exciting time for cryptocurrency, so it is at least worth your attention.
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