The XRP price is up over 20% today, reclaiming the $1.50 level it lost just a day ago after Bitcoin’s crash to as low as $60,000. The altcoin’s significant surge comes on the back of notable developments such as an increase in whale accumulation, rising unique addresses on the XRP Ledger (XRPL), and Ripple’s move for institutional DeFi.
Why The XRP Price Is Up Over 20% Today
In an X post, on-chain analytics platform Santiment highlighted a notable increase in whale accumulation as the crypto market crash deepened yesterday. Santiment stated that there were 1,389 separate whale transactions of $100,000 or more yesterday, which was the highest in four months.
Whale transactions typically precede price reversals such as these, with these investors creating more demand for the coin. The platform noted that the XRP price has been on a “particularly huge tear” today as the crypto market rebounds. The altcoin fell to as low as $1.15 yesterday, marking a local bottom, and is now up over 20%, recording the largest gains among the top five crypto assets by market cap.
Furthermore, Santiment noted that the number of unique addresses on XRPL surged to 78,727 in a single 8-hour candle, marking the highest level in the last six months. “These are both major signals of a price reversal for any asset,” it added.
The rise in the number of unique addresses on the XRPL also indicates accumulation from retail investors amid yesterday’s market crash. It is also worth noting that the XRP ETFs recorded a net inflow yesterday, even as the BTC and ETF ETFs saw outflows. SoSoValue data show that XRP funds recorded a net inflow of nearly $6 million, which is bullish for the XRP price.
At The Core Of Institutional DeFi On The XRPL
The XRP price has also surged as Ripple unveiled its roadmap for institutional DeFi on the XRPL, putting XRP “at the core” of all these plans. The crypto firm highlighted plans to launch a Permissioned DEX, a Lending Protocol, Smart Escrows, and Confidential Transfers on the network, all of which will boost the token’s utility.
Furthermore, the firm noted how XRP’s utility is growing across payments, liquidity, and credit markets. In terms of payments, Ripple noted that the altcoin serves as an auto-bridge for FX and remittance transactions, enabling traders to settle between stablecoins and other tokens.
As CoinGape reported recently, Ripple has secured a full EU-wide electronic money institution license. This is also a positive for the XRP price as it will boost the token’s adoption as the bridge asset for these FX and remittance transactions.
Ripple declared that XRP sits at the centre of the real-world financial infrastructure, not just as a transactional asset but as a “utility-rich protocol token that connects the pieces together.”
Source: https://coingape.com/3-reasons-why-the-xrp-price-is-up-20-today/
