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XRP price is up 7% at the time of writing. The coin’s price seems to be benefiting both due to FOMO action and RippleNet performance.
XRP Ledger native coin XRP has broken out of a multi-week falling trend. At the time of writing, XRP that is widely used by Ripple in its solutions, was trading slightly above $0.31, with the bull seeming in control of the price in the coming days.
In the past seven days, the asset rose over 40% and jumped over 7% at the time of writing. The rise is double the figure experienced by ETH, which jumped around 20% in the past seven days, at the time of writing. Bitcoin, the mother crypto coin, has jumped around 7.62% in the past seven days and around 2% in the past 24 hours.
This leaves XRP with the highest rise among the top three digital assets according to their market capitalization. With a market capitalization of around $14 billion, it is an indicator positive fundamentals are pushing the assets up despite the monthly Ripple XRP sale.
After receiving 1 billion XRP from the escrow wallet as per the guidelines, the company locked back 800 million according to details from its Twitter bot account.
500,000,000 XRP just locked back up into escrow as part of Ripple's monthly escrow process.
Learn about Ripple's XRP escrow process here: https://t.co/6WPmhRAvrM
— XRP Escrow Bot (@XRP_EscrowBot) August 1, 2020
With 200 million new coins in circulation, the digital assets still seem to defy gravity and lead the way. It is an indicator of the rising demand for the asset, making its value rise very fast.
XRP Price and Its Use by Ripple
It is not super clear as to why the rally is faster on XRP than the other top coin, but a few theories are being speculated.
One is the possibility of Ripple Labs’ customers using XRP to leverage their cross border payments, which will make it have a scalable utility, hence increase in its value.
This leads to the next theory, increased XRP whales, that is centered on FOMO, the fear of missing out. Nairmetrics, through its data feed, observed few whales increasing their stakes in the digital coin astronomically.
Since July 18, the number of wallets holding 1 million to 10 million XRP has skyrocketed in a short span. According to observable data, 30 new whales have joined the XRP investment community representing a 3.7% increase in such a short period.
“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,” said Barry Eichengreen, an economic historian.
He further added that “gold doesn’t really have any intrinsic value. People [believe] it will hold its value because other people value it.”
This comes as XRPL and Xumm new mid-term to long-term roadmap include adding fiat on and offramps to Xumm while introducing a new amendment to the XRP ledger called “Hooks.” The proposed change will offer new functionalities such as automatic saving and tipping as well as blocking of transactions related to scam activities.