After a relatively calm week, XRP prices accelerated on Tuesday, making it the third-largest cryptocurrency by market capitalization. Meanwhile, Bitcoin Cash fell to fourth place.
The Ripple to USD exchange rate accelerated 9.25% to reach $0.200137. It was the first time that Ripple traded above $0.20 since China banned cryptocurrency exchanges. That regulatory crackdown wreaked havoc across the industry.
However, we wrote at the time (repeatedly, I might add) that Ripple was not as vulnerable to China’s regulatory environment as many investors seemed to believe.
For one thing, the majority of XRP trading volume comes from South Korea, not China. Even now, the three most active exchanges are Korean: Bithumb, Coinone, and Korbit.
Collectively, they account for 72% of Ripple’s trading activity. Bithumb, the largest of the three, draws in more than half of all trading volume. Chinese exchanges don’t even crack five percent.
However, this doesn’t mean that Ripple is not invested in that corner of the world. It established an office in Singapore recently, which this blog suggested would drive XRP prices higher. It was a pivotal bit of Ripple news.
The timing of yesterday’s surge suggests that Singapore was a lightbulb moment for investors.
The little Southeast Asian country serves as host to every important bank in the world, and it is noticeably open to blockchain technology. It has all the necessary infrastructure for fintech, including the intellectual capital to increase adoption on the bank side.
We remain firmly bullish on our $2.00 Ripple price prediction, especially as the market begins to separate the wheat from the chaff in cryptocurrency markets.
We believe that a major partition will occur between public and enterprise blockchains, one in which enterprise blockchains will emerge better off. As the market leader in enterprise, Ripple is sure to experience a hefty tailwind from this partition.
Watching XRP pass BCH for the first time makes me believe this tipping point is around the corner.