XRP is performing really well, and it rallied 91% in a month. Its performance is obviously due to a driving force behind it. It is currently competing with big sharks such as BTC (Bitcoin) and ETH (Ether). The XRP price rally was attributed to the increase in new unique addresses, the buybacks that are happening in Ripple, and Ripple’s possibilities of developing a new product.
The rise in unique XRP addresses
You can judge the performance of a cryptocurrency by checking on its addresses at it reflects its activity in the blockchain.
AS for XRP, November has been a relevant month as there is a rise in XRP addresses unique. The particular change has been rampant since the value of the currency increased by 27% in just one day on November 22.
According to an on-chain analysis firm, Sentiment, Ripple has experienced the highest addresses transacting since May 1. The exact number of addresses transacting is 24,408, which made the price increase by 27% in a single day.
The increase in addresses doing transactions is a reflection of performance because it shows an increase in the currency value. This shows more interest in the currency.
Ripple buybacks could increase its value
At the start of Q3 in 2020, ripple had aggressive buybacks where it bought ripple worth$45.5 million. This is something the company has never done before. The company did that as a strategy of supporting a healthy market.
Ripple indicated that it is purchasing, and it still plans to continue with the purchase.
Historically, buybacks normally lead to an increase in demand of whatever asset class it is, from traditional assets such as stocks to modern assets such as cryptocurrencies.
$45.5 Million is not a very significant figure, but it is large enough to increase ripple value in the market. Its influence is likely to impact the market sentiments of the asset.
Ripple’s move to introduce a new product
It turns out that there is a cookie in the oven as Ripple plans to introduce a new product, Paystring. Its trademark application was made at the beginning of November at the United States Patent and Trademark Office (USPTO).
Paystring will primarily for both sending and receiving remittances. The product will deal with a wide range of monetary services. It will not be limited to remittances and entail monetary gifts exchanging different currencies over a computer network.
A new product release brings a lot of excitement, which gets many investors’ attention making the demand for ripple increase.
The XRP buybacks, excitement revolving around a new product, and increased address interactions may be the main reasons why there is a lot of buzz in the cryptocurrency space, making it experience a 16-month high.
From the history of weekly charts, XRP has not experienced what it is experiencing from November 2018. So, it is basically a multi-year high, and there is so much the market still anticipates.
Although Bitcoin has experienced massive gains in 2020, Ripple has a big potential to make big leaps into the market. It is among the top seven cryptocurrencies that are being eyed in 2020.
Volatility is expected since it’s the nature of cryptocurrencies. But the product and the company strategy give it a buffer from experiencing downfalls. If you are an investor, it is better to start small then build your way up. It is also important to keep in mind that high returns are normally associated with high risks; therefore, no pain, no gain.