After a huge 47 % increase in the value of Ripple in the last 24 hours, Ripple has over taken Bitcoin Cash and has become the third largest digital currency in the market right now with $31 billion market cap. Except for Bitcoin, Ripple’s daily trading volume has surpassed all of the digital currencies of the market over the last two days. Ripple’s daily trading volume doubled that of Ethereum on December 15.
According to the CNN reports, the South Korean cryptocurrency exchange market had pushed Ripple’s price up by 71 percent within one single day and it is said to be triggered by collaboration between South Korean and Japanese banks for testing Ripple blockchain tech- based solutions of payment. The CEO of SBI Ripple Asia, Takashi Okita officially said in a statement that Ripple Labs will be continuing to deploy its solutions and blockchain infrastructure in South Korea and Japan in the upcoming months.
Okita said, “South Korea is one of the most active markets worldwide when it comes to blockchain innovation and trading of digital assets. With trade flows into and out of the country totalling $960 billion every year, we also see a high end growing demand for Ripple’s frictionless payments solution in the country.”
Just after the announcement from Okita and finalization of the partnership between Japanese and South Koreas banks, Ripple’s price increased by more than 100 percent within a gap of just three days. In the last 24 hours, Ripple’s price increased from INR 42 to INR 60.75, which is more than 45 percent increase. Everyone in the market hurries to invest in the cryptocurrency when its value begins to surge rapidly. Thus the South Korean cryptocurrency exchange market and numerous other investors fear of missing out in between this rapid price increase.
We can see if the cryptocurrency has a strong base in the South Korean cryptocurrency exchange market, its value moves rapidly and with larger margins. This can be seen in the case of Ripple, Bitcoin cash and Monero. There are days when the value of these cryptocurrencies increases by more than 50 percent.
Bithumb, which is South Korea’s largest cryptocurrency exchange, is responsible for more than 31 percent of global trades in Ripple. The other local exchanges that account for an additional 12 percent are Korbit and Coinone. Compared to Poloniex, Binance, Bittrex, Bitfinex, Bitstamp, and Bitfinex combined; the trading volume of Ripple is higher in Bithumb alone.
In coming weeks, because the government in South Korea has plans to impose stricter regulations on the local cryptocurrency exchange market, Ripple’s trading volume can become an issue in the short term. Based on the reports, it is expected that the South Korean government will be introducing policies that will restrict individual investors and traders that are non- accredited, in cryptocurrencies investment. The demand and price trend of cryptocurrencies will have a negative effect in the South Korean market once the regulations are imposed on preventing Bitcoin investment from institutional traders and underaged investors.