Ripple (XRP) gained about 100% last week. At a certain point, its market cap was higher than that of Ethereum (which is now still the 2nd biggest crypto currency after bitcoin).
But what were the main reasons behind this bullish behaviour?
1. The Launch of xRapid Solution
xRapid, is a blockchain-backed tool designed by Ripple for easing cross border fiat transfers between financial institution. After testing the platform to run payments between the United States and Mexico in May, it proved to save transaction costs by 40%-70%.
2. PNC announcement
PNC, which is a $380 billion US bank joined RippleNet to enable near-instant money transfers with on-demand liquidity and end-to-end tracking on a blockchain. This basically means that PNC had joined RippleNet to process international payments for its customers. It’s one of the first major U.S. banks to use blockchain tech to streamline payments into and out of the country.
What makes Ripple different?
Ripple, which was established in 2012 mainly focuses on facilitating transfer between financial corporations. Some argue that it is not technically a cryptocurrency.
Unlike other currencies like Bitcoin, Ethereum and Litecoin, Ripple doesn’t want to overthrow the government along with the banking system. Conversely, it found a niche market and chose to start working with mainstream financial players and governments from the start.
Ripple’s ideology is really finding ways in technology by working closely with institutions to improve ultimately customers experience rather than, like the traditional cryptos, which are seen more hostile as they try to find ways to circumvent banks and governments.
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