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Ripple (XRP) grew 22% during the workweek amid zero top-5 cryptocurrencies. The steadily growing XRP trend has forced a number of analysts to make predictions about the return of altcoin to the top five digital assets, displacing Solana in sixth place.
On the other hand, the increase in Ripple’s capitalization is associated with a short-term event – the SOLO token airdrop.
This utility cryptocurrency will be credited to XRP deposit holders on a snapshot on December 24th. Speculators and investors were actively buying altcoins by this date and after Christmas, they will probably start taking profits.
How could the 230th spot on the CoinMarketCap ranked SOLO token, launched a month ago, cause such a price movement in the largest digital currency?
The utility cryptocurrency belongs to the Sologenic project, which uses the XRP Ledger blockchain to tokenize stock market shares. The startup has divided the business into two parts, one of which will receive an official EU license to trade in securities. The second part of the business is the Sologenic DEX exchange, which trades tokenized stocks on XRP Ledger.
An interesting idea, but the XRP buying rush is fueled by Binance’s promise to list SOLO after the airdrop. The distribution of tokens will take place in a month. According to Sologenic’s plans, XRP holders will receive 200 million additional SOLOs issued.
The increase in emission negatively affected the coin’s rate. SOLO went to the level of the price of the first placement.
Probably the strong fall opens a unique opportunity to enter the asset after the blockchain snapshot on December 24th. Speculators will pump SOLO before listing on Binance.