Ripple’s price per coin was sitting under $0.01 for the beginning of the year, until it finally surpassed the $0.01 mark in late March earlier this year. In the past week alone, Ripple has surged from approximately $0.25 to as high as $0.79, representing a 216 percent increase.
Ripple has become the third largest cryptocurrency based on market cap. Ripple is now sitting at a market cap of $30.47 billion, according to CoinMarketCap.
The current focus of Ripple is to work with banks and other financial institutions to offer a cost-effective method of sending monetary transactions internationally.
South Korean and Japanese banks were in talks about potentially integrating Ripple blockchain technology-based payment solutions, which contributed greatly to Ripple’s surge, according to a report.
Takashi Okita, CEO of SBI Ripple Asia, said in a statement that South Korea is one of the most active markets when it comes to blockchains and digital currency. He says that he sees high potential growth for Ripple.
Ripple also saw a surge due to its partnership with American Express, who’s looking to offer customers a blockchain payment method. The two companies call it the AMEX-Ripple partnership.
And lastly, there has been speculations and rumors going around that Ripple may be added to Coinbase. Coinbase is among the many digital exchanges that support cryptocurrency trading. The exchange has more than 10 million users and over $50 billion traded, according to its site.
But the problem with most of these cryptocurrencies is that the growth drivers are heavily based on speculations. The speculation based surges as caused problems for many countries already, especially Asian countries such as Japan, China, and South Korea looking to or have already regulated cryptocurrencies.
The problem analysts and government officials are foreshadowing is that these speculations may not come to be true, which in then can result in a major dump. Governments are cautious and fearful of cryptocurrencies due to its unstable volatility.
Now, major financial institutions, government agencies, and even cryptocurrency exchanges are issuing warnings to investors to be cautious and careful when approaching the digital currency market.