en

Coinbase Temporarily Goes Down (Again) as XRP Prices Spike


beincrypto.com 2020-11-25 15:30
Reading time: ~2 m

The price of Ripple’s XRP token, currently the world’s third-largest cryptocurrency by market cap, shot up to $0.90 today, only to quickly fall back 30%.

This was apparently driven by Coinbase users as the price of XRP did not reach the same levels on other exchanges. Bitfinex, Bitstamp, and Kraken, for instance, recorded numbers no higher than $0.80 during the same period.

Given this, some speculate that the market has reached a stage of the bull run where prices start to diverge on different exchanges — a phenomenon that can often be attributed to liquidity issues.

Source: TradingView

Shortly after the spike and subsequent mini-crash, “Coinbase” began trending on Twitter in the United States. As it has done in the past, the surge of activity appears to have crashed Coinbase’s website.

This is not without precedent and appears to have happened again despite CEO Brian Armstrong’s statements about preparation. “We’re working hard to add additional capacity (both in servers and customer support) to deal with increased traffic,” he tweeted on Nov 18.

Targeting Previous Highs

As previously reported by BeInCrypto, XRP has enjoyed a historically good week, climbing 100% in seven days, including a 40% rise from $0.32 to $0.45 in just 24 hours between Nov 21 and 22.

According to Forbes, the latest rally has been primarily driven by news that the company behind XRP, Ripple, which owns some 60% of the tokens, has said that it’s looking to capitalize on a central bank rush to digitalize their currencies.

Despite its current rise, XRP is still down around 80% from its 2018 peak.


   Source