XRP, the third-largest cryptocurrency, experienced a swell of volume over the last three days. According to CoinMarketCap, XRP’s volume more than tripled from $275,000,000 on Sunday to $972,000,000 at the time of publishing.
The surge in volume indicates a flurry of buying activity for XRP, the cryptocurrency associated with Ripple, with the price soaring more than 15% to tick over the $0.5 mark.
What is volume in cryptocurrency? Volume indicates how much of a particular cryptocurrency changed hands over a 24 hour period. High volume means that lots of traders are buying and selling XRP. Volume is not necessarily linked to price increase; volume will also rise when lots of selling activity occurs.
Why Did XRP Volume Triple?
There appears to be a handful of reasons behind XRP’s surge in volume, from the ongoing rollout of Ripple’s xRapid service to its expansion into new territories. Let’s look at them one at a time:
New xRapid Commercial Customer? SendFriend
Another name has been reportedly added to Ripple’s list of active xRapid partners. SendFriend is the latest company to join the roster, a service that facilitates money transfers between USA and the Philippines. SendFriend uses blockchain technology via Ripple’s distributed ledger and xRapid.
xRapid is Ripple’s cross-border payment service that actively uses the XRP token to settle payments. Although hundreds of banks are using Ripple’s network, only a handful are currently using xRapid.
XRP as Base Currency on Canadian Exchange
A relatively new crypto exchange in Canada, CoinField, now lists XRP as its base currency. In other words, 22 trading pairs on the exchange are now linked to XRP.
Although based in Canada, the exchange is available in 61 countries and is growing rapidly. The choice of XRP as a base currency means almost all trading on the platform will take place via the XRP token, which could increase volume further.
Ripple Expands to Dubai and Middle East
Ripple has been busy partnering with banks in the Middle East throughout 2018. They’ll now finish the year strong by opening up an office in Dubai.
These factors combined over the last few days to trigger a swell of momentum in the XRP market. It’s a welcome surge of activity after October marked the weakest month of trading of the year.
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