The fourth most valuable crypto by market value, XRP is in the news again; large investors have increased the pace at which they make transfers, hinting that there might be more than meets the eyes.
As data seen from Whale Alert revealed a large entity transferred 20,000,000 XRP (5,117,298 USD) from an Unknown wallet to Binance
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— Whale Alert (@whale_alert) October 6, 2020
The fourth most valuable crypto at the time this report was drafted, traded at $0.255594 with a daily trading volume of $1,688,608,417. XRP price is up by 3.2% in the last 24 hours.
XRP has a circulating supply of 45 Billion coins and a max supply of 100 Billion coins.
Quick fact: Ripple (XRP) plays dual roles; as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.
Unlike its crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks such as Standard Chartered and Barclays for international transactions worldwide.
Why are whales buying?
Economic historian, Barry Eichengreen, recently explained that cryptos should not just be considered for speculative reasons, as leading crypto assets have shown characteristics of being tangible assets.
According to him, “I don’t think that thinking about crypto as speculative investments, is really a long-term viable business model. Speculative investments have come and gone throughout history. Tulips came as a speculative investment and they went. Digital assets that provide actual tangible services like cross-border payments are the ones that are likely to have legs.”
Barry went on to explain why cryptos have become the new digital gold, “Gold doesn’t really have any intrinsic value. People [believe] it will hold its value because other people value it. There is, from that point-of-view, a parallel with cryptocurrencies. People pay actual U.S. dollars for it because they think other people will value it and pay actual U.S. dollars for it.”