The value of XRP has fluctuated after Nasdaq revealed that it will incorporate the XRP Liquidity Index to its Global Index Data Service. Prior to the announcement, XRP had shown stability trading in the region of $0.30.
Moments after the Tuesday announcement XRP spiked to $0.34. However, the bull frenzy did not last long since by the time of writing, XRP had dropped to trade at $0.30 with a market capitalization of $12,748,581,300.
According to Nasdaq, the XRP Liquid Index will offer instant reference rate for the value of 1 XRP. A methodology audited against key IOSCO principles was used to calculate the index. In simple terms, XRPLX will play the role of the base price of XRP for the long term investment.
The Nasdaq Global Index Data Service is made up of Brave New Coin’s (BNC’s) Bitcoin and Ethereum Liquidity Indexes and now XRPLI.
The XRP Liquid Index accurate price spotting is enabled by several features. We have the 30-second intraday pricing, end-of-day OHLCV, and time and volume-weighted-averages.
Cryptocurrency experts believe that the crypto indices will play a vital role in the adoption of digital assets. It will bring on board institutional investors who hold the key to mass adoption of cryptos.
The growth of XRP heavily relies on banks. If the financial institutions incorporate Ripple’s systems to facilitate payments, then we should expect the cryptocurrency to undergo a bullish run.