Last week, Ripple announced that XRP commercial applications will go live in a month or so. While the trigger is not very clear, the price of XRP has rallied to end the week with gains of more than 100% but then collapsed again.
For a few hours, Ripple has downgraded Ethereum from his second place, a feat repeated from last December when the cryptocurrency craze was at its height. In 24 hours alone, XRP has gained more than 50%.
In this very volatile market, prices may not always offer the best picture of the real value of a platform. Nevertheless, we can glean over such spikes to understand what is really happening.
Prices aside, Ripple is one of the most focussed blockchain companies when it comes to developing real-world use cases. Despite a lot of hype in 2017, a good number of ICO projects are yet to produce anything tangible.
In the same period, Ripple’s technology is already being used by the likes of Santander, Europe’s largest bank to enable faster cross-border transfers.
More than 100 banks worldwide have already tested the platform which Ripple claims can cut transfer costs by more than 60% when used with the XRP cryptocurrency.
Ripple has also been building important partnerships from around the world around its payments platform.
The reason for the current surge is probably the expectation that the xRapid transfer network will shortly be used by banks for international payments settlements. In this case, XRP is very likely to be used as an intermediary.
The bigger picture and perhaps the biggest story, however, is that blockchain technology is indeed starting to enter the mainstream.