The price of Ripple's XRP token hit a new record today, adding to the string of all-time highs the digital token has attained this year.
XRP rose to as much as $1.43 today, according to CoinMarketCap.
At this price, the digital token - which powers the Ripple network - had risen 30% in the last 24 hours, more than 450% in the last month and over 20,000% year-to-date (YTD).
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining XRP's latest price climb, analysts pointed to a few different factors.
Payment Card 'Consortium'
Today, Tokyo-based SBI Ripple Asia - founded by Ripple and Japanese financial services firm SBI Holdings - announced the creation of a "consortium" designed to investigate the role that distributed ledger technology could play in card payments, according to an online translation of a press release.
Tim Enneking, managing director of Crypto Asset Management, described this development as the only major news involving Ripple.
However, he emphasized that digital currencies have been growing more popular in Japan, a development that may have helped lay the foundation for XRP's latest price gains.
"Ripple is huge in Japan and Japanese interest in crypto currencies in general has skyrocketed (based on trading volume) over the past six months," he stated.
Enneking also emphasized that "It’s also in SBI Ripple’s best interests to hype XRP," "so one must bear that in mind as well."
Mati Greenspan, a senior market analyst for social trading platform eToro, offered a different point of view, asserting that while "This news of this new consortium does seem to be adding fuel to the fire," the latest announcement is only part of what has been driving XRP higher lately.
While some cryptocurrencies experienced notable volatility lately, "Ripple has been one of the first cryptos to really recover from the Christmas doldrums," noted Greenspan.
"It was well outperforming its peers in the surge leading up to the holidays and had quintupled in a week before the peak on December 22nd," he emphasized.
Jeff Koyen, CEO of 360 Blockchain USA, highlighted XRP's value, pointing to "Its stability and mainstream use cases."
Even after hitting its recent high of $1.43, "Ripple is still a buy-and-hold," said Koyen.
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.
From observing the behaviour of ‘ leavers ‘ and ‘ remainers ‘ since the EU referendum in 2016, I have… Read More
Prominent investors believe bitcoin price will consolidate before moving higher. | Source: Shutterstock Since July 10, within two weeks, the… Read More
Index funds have become hugely popular, and they account for a large following in 401(k)-style retirement plans. They're also reliant… Read More
Those who have been involved in cryptocurrency for some time now will have come across numerous scams. Some of these… Read More
In the midst of many controversies surrounding crypto, there’s light at the end of the tunnel when stalwarts like #MetaHash… Read More
Jamie Dimon, the CEO of J.P. Morgan Chase, recently stated, “To put it in perspective, we’ve been talking about blockchain… Read More