Call it the ripple effect of news. (See also: How Do I Buy Ripple (XRP) Cryptocurrency?)
Ripple, which has mostly remained on the sidelines of the recent price surge in cryptocurrencies, sprang to life today by recording a price increase of as much as 84 percent to $0.51. The cryptocurrency doubles as a payment network and has seen its price rise by approximately 7,500% as of this writing, this year. Its market capitalization has jumped to $17 billion, as of this writing, from $237 million at the start of this year. At 17:27 UTC, Ripple’s price was $0.44, an increase of 53.32% in the last 24 hours. (See also: The 10 Most Important Cryptocurrencies Other Than Bitcoin.)
Ripple’s price spike comes on the back of news that Japan and South Korea will begin testing technology to reduce timeframes and costs associated with international fund transfers between the two countries. The trials will be conducted between a consortium of banks in both countries and will last until January 31. They are expected to result in cost savings of approximately 60% as compared to conventional methods.
Ripple’s payment network has more than 100 clients testing their services. In an interview with the Financial Times earlier this month, Daniel Aranda, the company’s managing director for Europe, said 75 of those clients have already beyond testing into production. A spike in the cryptocurrency’s price increases its network effects. It may also help the company bulk up its dollar reserves for future business development.
Ripple joins a slew of other cryptocurrencies, such as litecoin and ethereum, which have racked up solid gains in the last couple of days and pushed the overall market capitalization for cryptocurrencies beyond $500 billion. This is the second major jump in its price.
The cryptocurrency experienced a similar spike in May, when its price tripled from $0.13 to $0.39 in less than 10 days. That price jolt occurred during a rise in cryptocurrency valuations across the board. Since then, however, Ripple’s price movement mostly showed small increments until today.