The crypto world was shaken on Thursday as the majority of the top crypto coins witnessed a price slump except for Ripple (XRP).
The price of cryptos like Bitcoin, Ethereum and Litecoin all slumped on Thursday after news surfaced that the South Korean government has concluded plans to require real-name cryptocurrency transactions. The report further revealed that the government is considering banning some exchange platforms in the country. With South Korea one of the leading crypto countries in the world, this news led to a plunge in the price of major cryptocurrencies except for Ripple (XRP).
The bitcoin price fell by 8% on the day, trading at $14,200. Ethereum, on the other hand, lost 4%, plunging down to $725 per ether while Litecoin shed 11% of its price action, trading at $240. In the same timeframe, another major cryptocurrency Ripple increase to an all-time high. At last check, XRP continued its record move and jumped to $1.69.
Ripple, a cryptocurrency that has so far been acknowledged and accepted by some banks attained a new all-time high Thursday of $1.30 a coin. The currency has been on a steady rise after it started December trading at $0.25 per XRP.
The major catalyst for the recent surge in Ripple price can be attributed to the Ripple’s Asian subsidiary and a group of Japanese credit card companies announcing a new consortium two days ago. According to their official statement, the consortium is working to determine how blockchain and distributed ledger technology can be used in credit card payments.
Prior to the consortium news on Wednesday, Ripple has been on a bullish run in December with the news propelling it to new heights this week (recorded 71% surge in price this week).
Earlier this month, Ripple became the third largest cryptocurrency in terms of market value after it overtook bitcoin cash, with the digital currency recording a 4,100% increase so far this year.
Ripple was founded in 2012, though it was previously known as Ripple Labs. The team is working on using blockchain technology to increase the speed of cross-border money transfers and bank settlements using XRP coins.
Ripple consists of three main parts; the first part is Ripple Labs which is the parent company based in San Francisco. The company has been able to raise over $100 million in funding since it was launched. The second part is RippleNet, the payment network which has successfully signed customers such as American Express; and the final part is XRP, the company’s crypto coin.
Ripple has become highly appealing to banks and other financial institutions owing to their ability to transfer huge sums of currency quickly and at a cheap rate. According to the company, Ripple (XRP) transactions are usually completed under 4 seconds on average. This is very fast compared to bitcoin blockchain that takes roughly an hour to complete a transaction.