Ripple (XRP) is one of the most interesting cryptocurrencies on the market. And all that interest has drawn many people to it.
In fact, the trading volume and price of Ripple (XRP) rose to new highs a few days ago. This price increase came about due to an increasing demand for Ripple.
Anyway, this article will explain where some of this increased demand for Ripple over the past few days has come from.
What is Ripple (XRP)?
Before we cover the price of Ripple, we first have to explain Ripple (XRP). Basically, Ripple is a decentralized cryptocurrency designed for quickly and affordably transferring currency across borders.
It’s mostly aimed at institutions. The positive with Ripple is that plenty of banks and financial institutions already use Ripple for international transfers to cut down on costs.
Why is Ripple increasing in price?
Ripple had a massive 100% in price because of massive demand for it. This demand came about for two reasons:
First, Ripple finally announced their partnership with Bank of America. Many had suspected this partnership for the past few months, but official confirmation by Ripple caused the price to increase as many view this as a sign that Ripple could become a major digital currency.
The other reason is that a large and fast price increase leads to positive publicity for a cryptocurrency. This publicity causes a lot of “dumb” money to purchase the cryptocurrency, which only drives up the price.
What is Ripple’s market cap?
First, market cap is defined as the current supply of tokens multiplied by the price of each token. There are many websites that report cryptocurrency market caps. However, CoinMarketCap is typically referenced when referring to a cryptocurrency’s market cap.
With that in mind, Ripple (XRP) has a market cap of $28.7 billion USD at the time of writing. This makes Ripple the third largest cryptocurrency by trading volume. Bitcoin is number one with a market cap of $341 billion USD and Ethereum is number two with a market cap of $68 billion USD.
What is Ripple’s trading volume?
Price is obviously important, but it’s not everything. Trading volume is also important because it increases liquidity. Basically, if a cryptocurrency has a high price and low trading volume, then you may struggle to sell the cryptocurrency.
Anyway, Ripple also has the third highest daily trading volume amongst cryptocurrencies with a daily trading volume of approximately $16 billion USD. Tether has the most trading volume with approximately $58 billion and Bitcoin has the second most trading volume with about $32.7 billion USD.
What will Ripple’s maximum price be?
No one really knows where the maximum price of Ripple will land. And if someone does know, then they likely are not telling other people!
There are some metrics we can use to help predict the price of Ripple, though.
First of all, Ripple is mostly aimed at financial institutions for transferring currency. As you can imagine, large financial institutions do not like taking risks when it comes to transferring assets.
It’s reasonable to assume that a financial institution would keep the price of a cryptocurrency they use for transferring currency at a somewhat stable price.
With that in mind, our prediction is that the price of Ripple will stay somewhat stable at a price of about $1.00 to make it easier for financial institutions to plan transfers.
Where to buy Ripple (XRP)?
Fortunately, buying Ripple is easy because it’s such a popular cryptocurrency. We’re not exaggerating when we say that every cryptocurrency exchange offers Ripple. And most of the exchanges have a Ripple (XRP) to USD trading pair, which means that you can easily purchase Ripple (XRP) with fiat currency.
Anyway, we recommend using Coinbase Pro if you are eligible to use it. Binance is another great option if you are okay with purchasing Ripple (XRP) with cryptocurrency.
That covers it for Ripple. The significant price increase of Ripple over the past week was mostly a result of the announcement of a partnership with Bank of America.
This is almost certainly not the last major partnership with a bank that Ripple will have, so we fully expect the price of Ripple to continue increasing on a long enough timeline.
In fact, Ripple has the potential to become a massively adopted cryptocurrency.