XRP Price Pulls Back Sharply from Recent Highs; Crypto Market Follows
The value of XRP declined sharply on Monday, as markets pulled back from a strong weekend rally that came on the heels of a newly announced Ripple-backed political coalition.
XRP declined 9.4% to $0.549, more than offsetting a strong weekend rally that drove prices to a high near $0.610. Roughly half the losses occurred in the last hour. More than $1.2 billion worth of XRP traded hands on digital currency exchanges in the last 24 hours, according to CoinMarketCap.
Despite the latest pullback, XRP has on at least three occasions overtaken Ethereum as the world’s second-largest cryptocurrency by market cap. XRP’s market cap peaked around $24.3 billion on Sunday as Ethereum fell to $24.2 billion, according to CCN. XRP is currently valued at $21.9 billion compared with Ethereum’s $23.4 billion.
All major altcoins and tokens were down at the start of the week while bitcoin maintained a fairly neutral trading range. The combined market value of all coins in circulation is currently $219.5 billion. The sudden altcoin reversal helped bitcoin regain some of its lost market share. BTC’s dominance rate, or the percentage of all cryptoassets held in bitcoin, is back near 52%.
XRP gained a staggering 80% during the month of September, with virtually all the gains occurring in the final two weeks. Investors’ interest in XRP rose after one of Ripple’s top executives teased a forthcoming product centered on the xRapid liquidity platform.
Ripple Launches New Cross-Border Service
Ripple Labs has announced a new cross-border payment service to help smaller banks boost liquidity and lower costs. The new service, dubbed “multi-hop,” will allow early adopters of the Ripple blockchain to settle payments on behalf of other financial institutions. With multi-hop, financial institutions can settle payments without having to enter an official bilateral relationship.
In practical terms, multi-hop eliminates the need to convert cross-border payments into U.S. dollars before being settled in the native currency at the beneficiary institution. This process is not only lengthy and cumbersome, but requires several fees including currency conversion.
Siam Commercial Bank (SCB), one of Thailand’s major financial institutions, will be the first to pilot the new system. The Asia-Pacific region is Ripple’s largest partnership network. Multi-hop could become a popular alternative in the region given the lack of cross-border payment integration in ASEAN countries. ASEAN, or the Association of Southeast Asian Nations, has ten member-states, including Indonesia, Malaysia and Thailand.
Ripple could be set to unveil new products and services at its forthcoming Swell conference in San Francisco. The two-day event, which officially kicks off Monday, will feature some of the world’s leading experts in payment technology and public policy.
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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