Ripple’s XRP has notched massive gains on the market, surging 11% on the back of recent developments keen on driving institutional investors.
The native token of the blockchain payment platform ballooned to double digits this week, leading the altcoin pack amid a wider cryptocurrency market upturn.
Data from CoinGecko shows the altcoin’s trading volume spiked to $2 billion, and with a price at $0.69, it temporarily unseated Binance native token BNB as the fourth most valued crypto by market capitalization.
Amidst the wider market rally, which has seen Bitcoin move past $36,000 and Ethereum tapping $2,000, XRP has posted a 22% increase in the last 7 days, while other indicators also show positive momentum.
On market indicators, experts say the gains were spot-driven, with liquidations going over $5 million and trading data showing a massive boost in retail activities acting on the heels of perceived institutional demand.
Ripple strikes partnerships, XRP spikes
Despite the company’s slight distance from the native token following criticism of over-centralization, recent developments like its partial win against the Securities and Exchange Commission (SEC) and central bank digital currency (CBDC) deals have fueled new appetite among the community.
Last week, Ripple announced an approval of XRP by the Dubai Financial Services Authority (DFSA) under its digital asset regime, which will see institutional clients offer XRP as part of their crypto services.
This year, Dubai and other jurisdictions aim to create digital asset hubs by partnering with cryptocurrency developers and institutional clients, deploying several strategies like license subsidies and significant tax reductions.
Over the weekend, analysts tipped more institutional investments for XRP as these huge firms trooping into the jurisdictions can now easily onboard clients to the virtual asset.
The company also announced that it has secured approval from the National Bank of Georgia (NBG) to power its CBDC, the digital Lari, which is expected to enter a pilot phase.
Per the announcement, Ripple Labs has become the technology partner for the digital lari after a tough selection process and will deploy its CBDC Platform to implement the currency while giving the government access to evaluate the benefits of retail, wholesale, public, and private use.
The NBG noted that Ripple was selected based on its experience in real-life pilots with a robust CBDC architecture.
“deep understanding of the project’s purposes and use cases, as well as a full commitment to the project’s success, sustainable business continuity, clear project development roadmap, and gradual deployment approach to use-cases.”
Ripple’s CBDC platform is now utilized in at least five countries, including a partnership with the Banco de la República, Columbia’s central bank.