The ripple price leaped more than 15 percent on Wednesday in response to news that SBI Ripple Asia had entered into a partnership with several major Japanese credit card issuers.
The cryptocurrency markets made a general advance on Wednesday, but no top-tier coin rose at a quicker pace than ripple. The ripple price swelled more than 15 percent, rising as high as $1.18 on Bitfinex before tapering to a present value of $1.13. Buttressed by large premiums on Asian exchanges, the global average ripple price surged as high as $1.29, bringing it within a few cents of the all-time high it set during a brief spike last week.
Even more astonishing is the fact that — even after last week’s comprehensive market correction — the ripple price is up 68 percent for the week, while no other top 10 cryptocurrency has managed to rally more than two percent during the same period.
More than 43 percent of all XRP volume is located on South Korean exchanges, and Bithumb alone accounts for $605 million worth of daily XRP trades. The Korean exchanges currently price XRP at $1.46, representing an approximate premium of 30 percent over its value on Western exchanges.
The rally appears to be predicated on the announcement that SBI Ripple Asia has entered into a partnership with Credit Saison, JCB, Sumitomo Mitsui Card, and other Japanese credit card processing firms to streamline operations and reduce fraud in the credit card industry.
Details are scant, and it is unknown if XRP will even play a role in whatever system the partnership develops. However, this has not stopped the ripple price from rising in response to announcements in the past, either because investors are bullish companies will integrate XRP into the platform at a later date or because they are ignorant of the fact that not all Ripple applications rely on XRP functionality. Earlier this month, the ripple price exploded by more than 70 percent after Japanese and South Korean banks tapped Ripple technology to conduct a blockchain-based payments trial.
In any case, the partnership is just the latest evidence of Ripple’s penetration into Asia, both as a financial product and an investment vehicle.
Write to Josiah Wilmoth at josiah.wilmoth(at)ccn.com.
Featured image from Shutterstock.
Last modified: May 21, 2020 11:22 AM UTC