xrp crypto stock

Ripple’s XRP surges 70% as Bitcoin craze sends investors flocking to smaller cryptocurrencies | Currency News | Financial and Business News

GettyImages 1228507339
Written by publisher team

GettyImages 1228507339
  • Ripple’s XRP price surged as much as 70% in extremely volatile trading on Tuesday, extending the cryptocurrency’s rally led by bitcoin.
  • As institutional investors allocate huge amounts of bitcoin as a hedge against inflation, other market participants are looking for alternative digital currencies – or altcoins.
  • Ripple XRP is designed for fast, less expensive, and more scalable alternative transactions.
  • The token’s recent rally has also been driven by the central bank’s push to digitize currencies.
  • Visit the Business Insider homepage for more stories.

Ripple’s XRP surged as much as 70% on Tuesday, as the third-largest cryptocurrency extended a rally started by a collective interest in Bitcoin.

Ripple has quadrupled since the start of the pandemic, making gains alongside Bitcoin – which surged 4% to an all-time high of $1,9241 on Tuesday.

“XRP has been a speculative investment for a long time,” said Michael Anderson, co-founder of DeFi venture Capitalist Framework Ventures. “Many partnerships announced but few practical applications.”

The major cryptocurrencies have gained price momentum over the past week. Ethereum gained 30% and Bitcoin gained 8%, but XRP led the way with a 70% jump. Bitcoin’s rally this year has been partly driven by its touted status as an inflation hedge, which in turn could spread to other cryptocurrencies.

Investors flocking to Bitcoin, Ethereum, Ripple and other cryptocurrencies are looking to take advantage of the central bank’s drive to digitize currencies, specifically the European Commission. Christine Lagarde, president of the European Central Bank, said earlier that the bank is considering a digital euro seriously.

Read more: Morgan Stanley: Buy These 4 Undervalued Space Stocks That Will Each Rise At Least 20% In 2021

The name “Ripple” plays a dual role as a payment and currency exchange. Ripple XRP was designed with the primary goal of making fast, inexpensive and more scalable alternative transactions that make it “Very usefulfor payments.

Ethereum, the second largest cryptocurrency by market capitalization, surged above $600 this week to a two-year high in a major update of its network to address scalability and security. Anderson said that the platform network upgrade will lead to new decentralized finance products that create high-demand alternatives to traditional finance, which explains the rapid increases in valuation.

For Bitcoin, any rally above $20,000 and the profit taking that comes after that “isn’t a bad thing, it’s healthy for the market to keep moving forward,” according to Rich Rosenblum, head of trading at crypto market maker GSR.

“It will pave the way for more investors with long-term expectations to get in for the first time, and for existing owners to add their allocations. There is still a lot of capacity among retail and institutional investors, and this price action can be said to be the first step to a bull market ready for new levels of capital that we haven’t seen in digital assets.

Read more: Brad McGill’s fund outperforms 99% of its peers this year. The Small Business Manager shares how he invests for big gains and where he finds opportunities amid a 39% YTD return.

About the author

publisher team