last week, the price of the Altcoin, Ripple (XRP) is gone through the ceiling. In the past seven days, a sample was recorded unprecedented growth of 140 percent, in just the last 24 hours to nearly 63 percent.

XRP is so returned far gone to beat Ethereum (ETH), that it has reached on the CoinMarketCap list, the second-highest market capitalization (according to the press of time on the third place). What could drive the price so high? Although there is no definitive answer to this question, here are a few backgrounds and theories.

Background: What is Ripple brings to the table?

Ripple is a California payment network and Protocol company, which was founded in the year 2012. In Essence, it focuses on the facilitation of the Transfers of funds between large financial company.

Ripple is not quite your average crypto-currency – in fact, some could argue that it is not a crypto currency. It stands for a less conventional ideology of the industry: Ripple does not want to overthrow the government together with the banking system. Vice versa, it was decided from the beginning, with well-established Financial partners. As Brad Garlinghouse, CEO of Ripple, told Cointelegraph in March:

„We have respected from the beginning, really, of how we work with governments, how we deal with banks. And I think some in the crypto Community, said: „As we destroy the government? How to bypass we banks?““

Garlinghouse, that the governments aren’t going anywhere, and says: „In my life, I don’t think that happened“ – therefore, he considers that it is logical to cooperate with you and to work within the existing regulatory framework. This setting helped Ripple, important partnerships with key stakeholders, including, among other things, the China-based payment service provider, Lian-Lian, the Saudi Arabian Monetary Authority, and Western Union.

Ripples of native tokens, XRP is. The company draws a line between the two: Ripple presents itself as a technology, while XRP is a „- independent digital Asset“, which is based on the Open-Source Blockchain technology XRP Ledger. According to its Website, Ripple used both XRP and as XRP Ledger in its products, such as xRapid and has 60 billion XPR – it is neither the Token nor the technology controls, however.

theory 1: the Start of xRapid

xRapid is a Blockchain-Backed Tool that was developed by Ripple, to facilitate cross-border Fiat-Transfers between financial institutions.

Ripple hopes to make the Mainstream financial system: After the Test, the platform for payments between the US and Mexico in may, the transaction costs are reduced by 40 to 70 percent. In addition to the traditional foreign exchange providers xRapid increased the transaction speed on „a little more than two minutes“. McKinsey research found that a typical international payments will need between three and five working days.

The recent spurt could be explained by the recent announcement of the company in an Interview with CNBC on 17 September that xRapid „could be introduced in the next month“ commercial, what is the head of regulatory relations for the Asia-Pacific region and the Middle East in the case of Ripple Sagar Sarbhai:

„I am very confident that you will see in the next few months, some good news, where we bring the product is live in production.“

In August, Ripple worked with three international crypto-exchanges – the American company Bittrex, Mexican Bitso and Philippine Coins.Ph – as part of a xRapid-solution to a „healthy“ Ecosystem for the exchange of digital Assets. The new partnership allows xRapid to switch between XRP, US dollars, Mexican Pesos and Filipino Pesos. In addition, Ripple is considering entry into the Chinese market, its Distributed Ledger technology (DLT) on cross-border payments apply, as Jeremy Light, Vice President of Strategic Accounts at Ripple of the European Union, CNBC on June 15. August announced.

the recent breakthrough of XRP, some Reddit users that xRapid has been quietly launched, while Ripple will announce it at a later time. „I think you have to let the banks one after the other, so that the XRP would not be go markets completely under the blanket, when all would jump in the same time,“ wrote / tradernoob76.

„Because of the volume and the books [that] will be eaten alive and no bodies to leave behind (except for the Fudders), I would not be surprised if xRapid is used. People are trying to sell, but it comes up again, and this volume is outstanding, and is on the rise. If there are only investors, has opened a new market, where a lot of people act all of a sudden, what is less likely, “ agreed another user. As always, the official Start of xRapid would be a great, positive message for XRP.

theory 2: PNC occurs RippleNet

more Concrete news this week came from PNC, one of the ten largest banks in the U.S. with 8 million customers and retail stores in 19 States. On Wednesday, the 19. September announced Ripple that PNC RippleNet had acceded to process international payments for its customers. „It is one of the first large U.S. banks, the streamline with the help of Blockchain technology, payments into and out of the country“, tweeted Ripple.

RippleNet is a decentralized network of banks and payment providers, which are connected via Ripple solutions such as xCurrent. In particular, certain of the PNC is to use unit – Treasury Management – xCurrent, in order to accelerate Overseas transactions made by commercial customers.

Ripple emphasizes that the solution will allow it to PNC business customers to receive payments immediately with your bills. The Senior Vice President for product management at Ripple, Asheesh Birla, believes that the use of xCurrent in Banking is the first step in the Acquisition of other Ripple products such as xRapid. „It is a way for the banks to get their toe in the water,“ said Birla to Reuters.

it is Noteworthy that xCurrent – in contrast to xRapid – not the Bank out of the whole process and cuts out, and thus, the conventional System does not change, but rather modified. The latter is the constant used in „inter-Ledger“ Protocol, the „kein distributed Ledger“ is how David Schwartz, Ripples Main cryptographer, confirmed, was skeptical of banks, the xCurrent in the case of cross-border payments. As Cointelegraph reported in June, said David Schwartz, that banks would not use the technology because of the low scalability and privacy problems probably.

However, the news proved to be bullish. Interesting, BlackRock Inc., a major American global investment management in the period 1995-1999, a subsidiary of PNC. Currently, PNC is the largest stockholder of BlackRock and owns a share of 21,45 percent of the company.

theory 3: Ripple gives way to the „security“Label in

In a recently with a CNBC Interview of the Sarbhai concerns replied that the XPR would be likely to fall in the United States under a security classification, as some high-profile and ongoing lawsuits claim.

the native Token of the company, he pointed out the Open-Source Protocol from the XRP Ledger and its independence from the company and stressed that Ripple controls only seven percent of the Validator node in the network. He further argued that XRP investors in the purchase of the asset, no investment, or shareholder rights secure, and stressed that countries such as Australia, the Philippines and Thailand have classified all of the XRP as a commodity.

How XRP could be similar to Bitcoin and Ethereum recognised by the U.S. Securities and Exchange Commission (SEC), which has proven in the past to be bullish in the face of this crypto – currencies, as a „Non-safety“.

theory 4: FOMO

The massive price increase could also Miss the good old „fear“ (fear of missing out), or FOMO – is a particularly strong force on the crypto market. This seems to be one of the main reasons on Reddit. According to this theory, began as a Ripple on the 18. September, the first High-learned, and other investors to barge in, and the Situation swelled like an avalanche.