3 Reasons Why XRP is Climbing Right Now

Ripple’s XRP is booming at the start of the new year, suddenly spiking by 8% on January 6. In the past few days, the coin started showing signs of a revival, and has now returned to $0.21.


Futures Market Announcement Boosts Price Performance

XRP has been pressured by its protracted slide, and has fallen almost every time the Ripple escrow account released new coins. But now, the asset looks like it’s switching to a new trend, as the latest tranche in late December did not shrink the price further. Here are the chief reasons why the Ripple asset is rising.

1. Binance Launches XRP Futures Trading

The triggering event for the latest price climb seems to have come from Binance’s announcement of an XRP futures market. This new form of speculative trading would make it possible to bet on price swings without settling for the underlying asset. A futures market may also be more liquid, and lack the danger of whales dumping on the spot market.

This also means more inflow of USDT speculation for the XRP market, as the new perpetuity will be open to large stablecoin owners to open and settle positions.

2. New Year Enthusiasm 

After an underwhelming December, XRP slid to as low as $0.18. At that level, the community lost some of its hopes, but buyers kept stocking up on the asset in case of a rogue rally. Now that the rally is here, the hype may accelerate, with higher volatility expectations.

The seasonal hype after the New Year, plus renewed activity after the end of the holidays, boosted XRP trading. Volumes are expanding slowly, to around $1.6 billion per day. This amount is still relatively small in comparison to other leading coins, but…

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