There Are 3 Major Drivers Behind XRP’s Bullish Price Action
Coinbase is the latest exchange to announce support for FlareNetwork's Spark airdrop to XRP holders.
On Saturday, the San Francisco-based exchange said that customers in approved jurisdictions who hold XRP in their accounts on Dec. 12 would be qualified to receive Spark tokens. Coinbase wrote,
“The amount of Spark you’ll receive depends on how much XRP you had in your account at the snapshot time.”
The airdrop will be distributed after the Flare network launch, said the exchange.
Other cryptocurrency exchanges supporting the airdrop include Binance, Bitstamp, Bitfinex, Bithumb, Bittrex, eToro, Huobi, Kraken, KuCoin, OKEx, Poloniex, Nexo, Upbit.
Already, 81.564 accounts with 17.5 billion XRP balance have set up the claim for the SPARK token. Interestingly, the recent increase in XRP price and SPARK airdrop has the XRP holdings increased by 421 million and over 36 new XRP accounts created.
At the time of writing, XRP has been trading at $0.617, up 150% in the last 30-days.
An “Exciting” Development
Not only XRP holders get free SPARK tokens; Ripple is praising the FlareNetwork project.
In a recent interview with CNN, Ripple CEO Brad Garlinghouse said that XRP holders are “deservedly excited” about the latest project as he is because “Flare has carved out an interesting niche.” He’s optimistic for them as they move forward with this airdrop of Spark tokens.
Flare will airdrop Spark token to XRP holders on Dec. 12 at a 1:1 ratio. Garlinghouse added,
“I’ve met the management team there. I think they’re very talented, and I think they have a clear vision of the problem they’re going to solve.”
Ripple is an investor in Flare Networks that describes itself as “the world's first Turing complete FBA network.” Its website is scalable with low transaction cost and integrates Ethereum Virtual Machine to bring Ether-like functionality to the XRP Ledger. According to Ripple CEO, the new “exciting” startup is,
“really distinct from what Ripple is doing.”
“just a further example of people’s recognition that XRP is such an efficient digital asset and… utility will drive the long-term value of any digital asset.”
He sees it as an opportunity from now on but says it does not affect its RippleNet customers or how they use ODL (On-Demand Liquidity) for customers.
Burn Those Billions
The market is reacting positively to all the XRP news that had the digital assets trading bid over the weekend. Open Interest on the contracts is also back above $0.4 billion.
Another supportive driver behind the recent price action is Tweets from Ripple Chief Technology Officer David Schwartz. To prevent the drop in its price that could occur, should those billions in frozen tokens ever flood the market, he noted the community could force burning billions of the protocol’s native XRP tokens held in escrow.
Recently for the first time, Ripple bought $46 million worth of XRP despite already owning nearly half of the digital asset's supply — a purchase the company said was made to support healthy markets.