Ripple has skyrocketed by more than £20billion ($28billion) in the past 24 hours, its coin market capitalisation rising from £25billion ($34.8billion) this time yesterday to £45.3billion ($62.9billion).

A single Ripple token is now trading at more than $1.65 - up from Wednesday’s low of $0.89.

The digital currency suffered huge losses over the past week, tumbling to below $1 for the first time since December.

Rivals bitcoin (BTC) and Ethereum (ETH) also crashed, after the threat of South Korean regulators banning cryptocurrency trade spooked investors.

The CoinMarketCap currency tracker below shows the latest XRP price in real time. 

Why is Ripple going up today?

Charles Hater, founder of the CryptoCompare tracker website, said Ripple and its rivals are up today because the markets are starting to correct themselves.

He said: “The market has been carnage and a lot of investors are starting to take a step back and breathe a sigh of relief as the price has stabilised.

“Trading volumes were extraordinarily frenetic across the exchanges yesterday.

"The correction was expected and it has been a big one."

Ripple’s dramatic upturn comes after a total cryptocurrency crash, which was triggered when the South Korean government voiced proposals that would prohibit trading. 

On Tuesday, Finance Minister Kim Dong-yeon reiterated his position that a ban is still very much a “live option”, adding that government ministries “need to very seriously review it”. 

But Dhwani Mehta of FXStreet said investors appear to be brushing off the uncertainty coming out of South Korea, with many seeing the dip as a “good buying opportunity”.

She said: “The crypto markets appear to have ignored the latest South Korean headline, citing that the South Korean regulator is said to consider shutting down all virtual currency exchanges. 

“Most industry veterans view the sell-off as a good buying opportunity while adding that the traders could still continue to trading the digital currencies by switching onto exchanges in the countries that haven’t banned the cryptocurrencies.

Despite today’s impressive performance, Hussein Sayed, chief market strategist at FXTM, has warned it is still too soon to say whether the market has fully recovered. 

Citing bitcoin, he said: “Most people who were buying bitcoin and other cryptocurrencies most recently, are not using them for transactions, but holding them in the expectation of profiting from the endless rising price.

"Whether the animal spirits have already released their grip, remains to be seen and this cannot be ascertained from a two-day slump."

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