An executive at the crypto investment firm Kenetic Capital says XRP’s huge year-end rally was fueled by one simple factor.
Managing partner Jehan Chu says the coming Flare airdrop, which is set to happen on December 12th, triggered a burst of retail buys that sent the cryptocurrency from $0.30 on November 19th to a high of $0.76 just four days later.
Chu tells the Daily Express that he believes the airdrop, which will give XRP holders a new governance token called Spark, awakened the leading cryptocurrency from slumber.
“The impending airdrop is supercharging the XRP bull market and whipping mindshare of one of the largest crypto communities into a frenzy.
With the imminent launch of Flare, a smart contract utility fork of XRP, the pair will attempt to challenge Ethereum’s dominance in decentralized finance and decentralized applications.”
XRP has since pulled back as the altcoin market at large reels from a drop in the price of Bitcoin. The crypto asset is $0.54 at time of publishing, down 15% in the last 24 hours according to CoinMarketCap.
Ilia Maksimenka, the chief executive of the cross-border payments platform PlasmaPay, says XRP was on track to hit $1.00 before the broad market turnaround.
The popular pseudonymous analyst Credible Crypto says he believes the current correction is a buying opportunity.
“To be able to buy XRP anywhere between $0.38-$0.55 is a blessing. If you get this chance, you best take it. No guarantees we get the lower end of this range, so dollar cost averaging down is your best bet.”
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