Earlier today, XRP broke the $1.41 price level before falling back in the $1.39 range, temporarily improving the sentiment around the cryptocurrency as it continues to seesaw in the wider tepid crypto market. However, there may be more to the possible reason for XRP’s short burst in price action.
GTreasury bet paying off for XRP?
To recall, earlier this year Ripple launched Ripple Treasury, an enterprise-focused platform that brings together GTreasury’s corporate treasury software with Ripple’s cutting-edge blockchain infrastructure.
While the development went under the radar at the time, XRP’s price action is now starting to reflect its effects. Specifically, Ripple Treasury enables cross-border settlements in three to five seconds leveraging Ripple’s RLUSDT stablecoin.
Besides bridging legacy treasury systems with blockchain infrastructure and positioning Ripple as an end-to-end institutional financial infrastructure, the acquisition also enhances XRP’s utility through enterprise payment volume.
The document reads that cross-border settlements via RLUSD on the XRP Ledger could drive huge transaction volume from several Fortune 500 treasury operations.
Of note, Ripple Treasury’s access to overnight repo markets and tokenized money-market funds – including BlackRock’s BUIDL – will allow firms to put their idle cash to use. This way, they can generate yields that were previously not possible outside traditional banking hours.
In simple words, as Ripple Treasury’s enterprise adoption rises, the organic demand for XRP and RLUSD could rise in tandem. Recent XRP price action could be just the beginning of this anticipated rally.
Exchange data looks encouraging
Besides the $1 billion acquisition news, fresh exchange data also shows positive signs for XRP. Notably, open interest on Bybit exchange rose by about $23.9 million on May 1, while on Binance it surged by $2.7 million.
To understand, a rise in open interest while the underlying asset’s price is also surging means that traders are increasing their exposure as momentum begins to recover. What’s even more impressive is that leverage is building while XRP’s exchange reserves are falling.
The following chart shows how the digital asset’s reserves have fallen off a cliff on Binance, from around 2.80 billion on March 17 to 2.76 billion on May 4. Similarly, ByBit saw XRP reserves slide from 117 million to 98 million, a decline of close to 19 million units.
In percentage terms, XRP reserves on Binance by about 1.8 percent, while on ByBit the difference was much larger, to the tune of about 16.2 percent. In addition, improving social media sentiment is likely to further help the cryptocurrency’s upward price trajectory.