XRP Leads Crypto Market Recovery Following Quick Burst; Will Altcoins Follow?
XRP’s price catapulted on Wednesday, gaining 9% in just three hours after Belgian banking giant Swift announced it would integrate a crypto-friendly financial platform into one of its payment solutions.
XRP rose quickly and sharply Wednesday morning and eventually reached a high of $0.3195. At last check, XRP/USD was valued at $0.3153, having gained 8%. In the last 24 hours, XRP’s trading volume has risen by $130 million to $628 million, according to CoinMarketCap. In volume terms, the largest markets for XRP are ZB.com, Binance and UPbit.
At current values, XRP has a total market capitalization of just under $12 billion. It was the second largest cryptocurrency by market cap and well ahead of Ethereum, which is presently valued around $11.4 billion.
XRP’s sudden burst appears to have rubbed off on other top coins. With the exception of Tether (USDT), all major assets had reported gains Wednesday. Among altcoins and tokens, gains ranged between 0.6% (Tron) and 5% (bitcoin cash).
The total cryptocurrency market was valued at $115.3 billion. Bitcoin’s share has fallen from a high of around 53.8% back down to 52.8%.
Swift Embraces Crypto
Swift, a financial messaging service for global banks, announced Wednesday that it is partnering with blockchain startup R3. As CNBC reports, Swift will integrate R3’s platform within its payment standards framework Global Payments Innovation (GPI).
“We are announcing later today a proof-of-concept with the R3 blockchain on trade where you can initiate a payment on the trade platform and then it goes into GPI,” Gottfried Leibbrandt, Swift’s CEO, told a CNBC-hosted panel on Wednesday.
Ripple CEO Brad Garlinghouse, who was also part of the panel discussion, said his company is open to “ways we could work with Swift.”
While R3 and Ripple are competitors, the former has piloted XRP for its Corda platform, an open source blockchain that enables institutions to transact directly with one another. R3 has also partnered with Barclays and Royal Bank of Canada to test XRP for cross-border payments.
Both companies were involved in a legal tussle in 2017 after R3 accused Ripple Labs of violating a purchase agreement of 5 billion XRP tokens. The matter was later resolved.
Swift has emerged as the global standard for cross-border payments, with more than 11,000 institutions using it to send roughly $200 billion every day. Ripple contends that the system is slow and expensive due to its centralized structure. The company is positioning itself to one day compete with Swift in cross-border payments. Even a tiny fraction of Swift’s annual transaction volume can set XRP apart from other cryptocurrencies.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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