While Bitcoin has received substantial attention lately for its sharp rise in value, another cryptocurrency has quietly been on the move as well. XRP, the payment token that is used in the global payments network created by crypto company Ripple, gained 169% in November. Overall, it is up 225% in 2020, as compared to Bitcoin’s 165% annual gain.
There seems to be a few possible reasons for the recent spike in XRP activity and value. One possible reason is a planned airdrop of free “spark” tokens by the new smart contract platform known as Flare Network to XRP coin holders. This distribution of tokens is being coordinated by RippleX, a division of Ripple.
Another possibility is that newcomers to cryptocurrency desiring to be part of the recent crypto bull run may not be aware that Bitcoin supports fractional purchases. Namely, the imposing $19k+ price per coin price may seem too high, and some may be unaware they can buy a portion of Bitcoin at a lower denomination. XRP has been trading at 62 cents per coin, so it appears much more approachable for new coin buyers.
There also seems to be a Bitcoin halo effect that impacts other cryptocurrencies. When Bitcoin rises in value, other lower priced crypto coins tend to rise in value as well. Likewise, dips in Bitcoin value often impact other digital coins.
Case in point- Stellar (XLM), a digital coin launched by Ripple’s co-founder Jed McCaleb gained 153% in November and was the second highest performing crypto coin in that month. Its value rose 313% over the year. Also, Ether – the native cryptocurrency on the Ethereum blockchain – rose 56% in November.
These are promising trends for cryptocurrency in general, as well as META 1 Coin specifically. Bitcoin may receive the lion share of news coverage among digital coins for its substantial rise in value over the years. However, the significant rise in value of lesser known and lower priced crypto coins demonstrates the opportunity for growth across the crypto spectrum.
With extensive press coverage in recent months of the crypto rally, the increased attention will likely continue the momentum that has just begun. The influx of first-time cryptocurrency coin buyers will also help add stability to coin prices. The recent $3000 sudden drop in Bitcoin pricing quickly recovered, in part due to increased public confidence and a perceived discounted buying opportunity among a larger number of coin buyers than in the past.
META 1 Coin is poised to benefit from this expanding marketplace of new crypto coin buyers as well. As the saying goes, a rising tide lifts all boats, and cryptocurrencies across the spectrum are experienced promising growth.