By Solomon Odunayo
The Ripple’s digital token XRP has been exhibiting a price uprising over the last week. It has significantly outpaced the surging trend of the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), adding over 130% to its price within a week.
This significant surging trend has aided the coin to seamlessly displace Tether (USDT) in terms of market capitalization. Since the rally began, XRP has not shown any sign of retraction.
The Ripple’s digital token has now risen four-fold since the beginning of the year.
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Forbes Attributes the XRP’s Surging Trend to Latest Positive Developments
As many wonders about the shocking rally exhibited by the third-largest cryptocurrency by market capitalization, XRP, Forbes analyst has attributed the rally to one or two developments within the XRP community.
The Forbes analyst believes that Ripple’s move to capitalize on the emerging central bank digital currencies (CBDCs) by hiring a senior director of central bank engagements, is currently strengthening the value of XRP in the market.
This followed the comment made by the Ripple CEO, Brad Garlinghouse, earlier this month that central banks could leverage the XRP Ledger to issue stablecoins that are pegged to fiat currencies. Garlinghouse also added that the digital token XRP could be used as a bridge asset to exchange digital forms of fiat.
In an interview on The Scoop podcast, Ripple CEO stated that mere using stablecoins won’t really solve the problem that XRP is solving, adding that “XRP as an extremely efficient, extremely scalable blockchain, is ideally suitable for that.”
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A Bill Prohibiting U.S. Banks from Blacklisting Competing Legal Industries Is Attributed to XRP’s Rally
The Forbes analyst also stated that the payments and transfers regulatory climate that has remained murky over the years is now becoming clear.
He quoted the email sent by the senior market analyst at FxPro, Alex Kuptsikevich, who said “Unexpectedly, the brightest among alt coins was the XRP token.”
In the email, Kuptsikevich pointed to the speculation that such rally may be associated with the United States Office of the Comptroller of the Currency bill, which is targeted at prohibiting banks from blacklisting competing legal industries, which possibly include Ripple.
Kuptsikevich further stated that if the bill becomes an Act, it will “accelerate and reduce the cost of bank money transfers while having all the necessary licenses.”
It can be recalled that Ripple, the cross-border payment firm that oversees the distribution of XRP, has been considering a move away from the United States, citing a hostile regulatory climate.
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Additionally, Ripple has been battling accusations related to impacting the price of XRP negatively by initiating XRP selloffs since it last attained its price all-time high of around $4.
Regarding the challenges XRP has faced over the years, Kuptsikevich said “The coin had a very difficult last few years but especially deeply oversold conditions eventually played into XRP hands.”
Meanwhile, the cryptocurrency has not shown any sign of relenting from the current rally over the past hours. At the time of filing this report, XRP is trading at $0.706994, with a 55.22% price uptrend in the last 24 hours.