Huge positives for cryptocurrencies have been seen this morning as prices skyrocketed overnight.
A sudden spike late Thursday evening saw Ripple jump more than 10 percent.
Total gains from this morning have seen prices rise by 17.9 percent in total, with Ripple trading at $0.61 as of 7.25am.
Market capitalisation now sits at US$23.95 billion.
The total price of the cryptocurrency market saw a 25 percent bump as the high tide brought all coins into the green.
Why are Ripple prices soaring?
Pinning down a single explanation for the sudden spike in prices is hard. There wasn’t any significant news overnight to warrant such a burst, but it is welcome news for investors.
Bitcoin saw prices increase by more than $1,000, breaching $8,000 for the first time in a month.
Matthew Newton, an analyst at eToro, said: “Whilst there has been some stability in the cryptocurrency markets over recent weeks, we’ve seen a record number of short positions building on major exchanges.
“When the price began to rise this afternoon, a large number of shorts with big positions were squeezed. The resulting interest from buyers increased momentum, causing the price to jump.”
Ripple price news: Why are Ripple prices soaring? What is the price of XRP today?
Ethereum also jumped by more than 10 percent to trade around $500 in a remarkable turn of fortune for the market.
2018 has been an awful year so far for cryptocurrencies, with almost 50 percent total market cap being wiped off in Q1.
Fears the bubble could be about to burst were seeping into traders’ minds as prices continued to crash.
This morning brings a happy change of events, as prices rocketed up in less than an hour.
The cryptocurrency market is renowned for its volatility, experiencing massive gains or drops on the tiniest detail or announcement.
Ripple gained more than 17 percent overnight
There appears to be no significant news to cause this surge, but it could simply be put down to a flippant trader interest.
In regards to Ripple, the dizzying heights could be explained by Santander’s announcement of a new blockchain-based foreign exchange service that will utilise Ripple’s efficient transaction process to transfer funds.
According to CNBC, the Santander One Pay FX platform is currently live in four different countries (Spain, the U.K., Brazil, and Poland), with a wider roll-out expected in the coming months.
The news is a welcome relief for XRP traders who had to hold strong after a tense few weeks of negative charts.
Prices may also have been impacted by the announcement that Ripple is not a security, putting to bed rumours that CRP will be added to Coinable.
Cory Johnson claims Ripple is not a security
Ripple’s chief market strategist, Cory Johnson, told CNBC: “We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law.”
Bitcoin and Ethereum, the largest cryptocurrencies by market capitalization, are generally not considered securities. Right now, Coinbase only lists four coins: bitcoin, its offshoot bitcoin cash, Ethereum, and Litecoin.
“Coinbase never ever raised the issue of whether or not XRP is a security in our discussions about listing XRP,” Johnson said. “We’re 100 percent clear, it’s not a security. We don’t meet the standards.”
A spokesperson for Coinbase also confirmed that it did not discuss regulation with Ripple, and their conversations revolved around criteria for adding assets broadly, which the company updated in March, Coinbase said.