Ripple’s XRP token climbed more than 50% today and became the world’s second largest cryptocurrency according to market capitalization (market capitalization).
The digital currency rose to no less than $ 2.20 and increased by more than 50% in 24 hours, according to CoinMarketCap.
The XRP token has had a blockbuster month and appreciated more than 700% since the beginning of December with a price of about $ 0.25, showing additional CoinMarketCap figures.
Note: Investing in crypto coins or tokens is highly speculative and the market is largely unregulated. Anyone who thinks about it must be willing to lose his entire investment.
A Great month for Ripple
The digital currency has had several short rallies this month.
An example is the sharp rise that XRP experienced in mid-December, where it rose more than 90% in 24 hours to about $ 0.87 when investors responded to news that Ripple had completed its cryptographic blocking of tokens.
The cryptocurrency again enjoyed a short rally about a week later, climbing to $ 1.24 as it benefited from a sustained momentum and robust Asian trade.
The price of XRP approached $ 1.50 earlier this week, adding to the news that Tokyo-based SBI Ripple Asia has announced a consortium to investigate how distributed ledger technology can be used for payment cards.
Shifting investor priorities
More recently, analysts focused on the changing sentiment of investors, with the emphasis that XRP benefited from these changes.
Originally, many of those who propagated cryptocurrencies for these digital assets because of their decentralized nature, said Marius Rupsys, a digital currency trader.
These market participants hated Ripple’s centralized character because he chose to trade digital currencies that were decentralized, he said.
However, the size of the digital foreign exchange market has increased significantly this year, from about $ 17.7 billion to more than $ 600 billion this month, CoinMarketCap figures show.
According to Rupsys, the new investors who flood the market are more interested in the return they can generate than the decentralization and immutability that many Libertarians would appreciate.
This has caused considerable setback for Ripple, which in turn has risen sharply in price.
Disclosure: I own Bitcoin, Bitcoin Cash and Ether.