The XRP price has recently experienced a rally, joining the broader crypto market. It has successfully moved out of the bear zone, with a 1.3% increase at the time of writing, reaching $0.5197. Over the past week, XRP has not only erased its losses but also gained 3.85%. This has helped trim its monthly loss to 9.2%.
Bitcoin's resurgence and its rise to a three-year high of $50,358.39 have had a significant impact on the crypto market. This rally has also affected altcoins, including XRP, which has benefited greatly from the positive market sentiment.
XRP's price has been a major concern for members of its ecosystem in recent months. Many have called on Ripple Labs executives to find a solution to the price stalemate. While Ripple has implemented strategies to control the circulation of XRP and promote its use case, the price has not shown significant improvement. However, the strong correlation between XRP and Bitcoin has become the primary driver of XRP's growth.
Although the correlation with Bitcoin has been beneficial for XRP, it also poses a risk. Any potential correction in Bitcoin's price could trigger a slump in XRP and other correlated assets across the market.
Ripple, as the administrator of XRP, plays a crucial role in its growth. The company utilizes XRP in its cross-border payments solution, On-Demand Liquidity (ODL), and promotes it as a vital settlement asset for the RippleNet protocol. Additionally, Ripple developers are actively working on the XRP Ledger (XRPL), a smart contract network, to onboard new innovators and create applications that generate high demand for XRP. These efforts aim to boost the long-term price growth of XRP.
