Ripple (XRP) has been an enigma in the cryptocurrency market since its launch in 2012 and has particularly risen as one of the most valuable blockchain company. Its coin XRP is currently the third most valuable coin based on market capitalization.
The large market capitalization of ripple has led to several speculations on the future price of XRP with many trying to figure out how the recent trends can influence the price of Ripple. Today we examine whether ripple can still reach $1 dollar in market price before the end of the year.
The February carnage this year saw ripple drop from a high $3.85 to $0.76 before its current levels of $0.33. This shows that the digital coin is capable of reaching such heights with proper management and adoption which the blockchain company seems to be adhering to.
Ripple (XRP) Is Backed By Many Financial Institutions
Ripple is the most used blockchain by financial institutions and has grown in strength over the past few months as it adds more financial institutions into its portfolio. However, one major reason why the coin is undervalued is that many of this financial institutions ignore its coin XRP while utilizing its tools.
This has emerged as the growing trend which could be a worrying factor for the cryptocurrency as this still indicates scepticism by financial institutions in using XRP as its base currency for transactions. Despite this, it is becoming clear that XRP has the ability to be used in daily transactions.
Ripple recently released its xRapid payment platform
Ripple began its development of its highly anticipated xRapids which analyst believes could position the XRP into entering double figures at the end of the year. Several financial institutions have begun experimenting with the new ledger payment system.
Moneygram and Westen Union have begun beta testing of this technology which is claimed to save users 40%-70% of the fees paid to third-party brokers. This rush to use xRapid will inadvertently fuel the need for XRP and create demand in the market.
As a result, the price of XRP would go up, giving a tidy little profit for users that purchased during this low price period. Bitcoin is the undisputed industry leader but there is no clear-cut second place although Ethereum currently occupies the spot in terms of market cap.
Ripple can overtake Ethereum if it rises to anywhere between $2-$3 making it the second most valuable coin.
Ripple blockchain has emerged as one of the most innovative financial system seen in the digital currency age. Since launched in 2012 Ripple has received solid investment from Banks and Financial organization because of its faster transactions.
It essentially uses a credit based system using peer to peer paradigm which ensures that the entire process is decentralized. This uses a distributed payment system based on the trust of users to complete transactions.
To perform this transaction effectively Ripple uses a gateway medium which serves as the connection between the trust chain and both parties involved in the transaction. The Gateway acts like a middleman intermediary which receives funds within Ripple and authorizes the payment gateway.
Why you Hodl Ripple
Ripple’s XRP continues to be affiliated with many financial organization with the latest news reporting of Ripple adding Bittrex and two financial institutions which would increase its exposure in this little countries.
Ripple have also reiterated its desire to integrate all payment connection systems into a decentralized system which is quite ambitious by the blockchain company. That is why Ripple seeks to be the intermediary currency for other tokens facilitating transfer between different coins
With all these factors already in place, many crypto analysts believe that it is possible for ripple to end the year at more than $1. We also concur with them that investing in the coin is one of the best investments to undergo this year.
It is perfectly suited to reach $1 and is a low-risk investment because of its current price of $0.33. it is a good idea to hodl at its current levels for the rest of the year.
In conclusion, since Ripple’s XRP is a widely used payment and exchange currency in both the digital currency and mainstream financial industry it has lots of room to grow from its current price.
Ripple is also seen as the crypto with the greatest potential to rise rapidly among analyst this year and we believe that it can reach the $1 mark at the end of the year.