New Exchanges May Help Boost Ripple (XRP) Price
Ripple’s xRapid cross-border payment solution is now live on three new crypto exchanges. The news revealed before the weekend seems to have prompted an XRP rally. Ripple (XRP) is currently trading at $0.3378, up from the upper twenties last week. xRapid is a major example of real-world adoption and utility, shoring up Ripple’s prospects for the coming months.
Why Did Ripple’s Price Increase?
As any Ripple investor will tell you, XRP’s price has been suffering since early 2018. This is not a unique problem in the crypto industry. The bull run/bubble of 2017 inflated crypto prices to the breaking point. Since then, valuations have been making a steady retreat, eliminating the remarkable gains of the previous year.
This is due to a number of factors. For one, blockchain investors are newly skeptical about the real world value of these digital products, companies, and services. Many of the most popular cryptocurrencies have yet to release a product. Thus, unable to demonstrate utility, investors are wise to be wary of some digital currencies. But Ripple is very much the exception.
Ripple has been used to move money and for institutional purposes for years now. In a rational market, Ripple XRP would not have seen such price declines as the rest of the market suffered. But this is not a rational market. As investors wake up to Ripple’s real utility, expect prices to increase. Breaking the $0.30 resistance level speaks to higher prices possible in the near future.
What is xRapid?
So, what’s this new technology that gave Ripple such a boost? xRapid is a payment solution that was adopted by Bittrex (USA), Bitso (Mexico) and PhilippineCoins.ph (the Philippines). xRapid allows users to send fiat payments internationally, regardless of the origin and destination currency. For example, an American user could send US Dollars through Bitso. These dollars would be transmuted into XRP, which, in turn, would be transmuted into Mexican Pesos.
xRapid was already a proven technology but actually seeing it working on popular exchanges helped build confidence among still-suspicious investors. Even as the altcoin market retreated slightly from last week’s modest surge, Ripple held and surpassed its recent gains.
Ripple made its name long ago for its potential for cross-border transactions. Whether these were small-value transactions from a far-from-home worker to a family overseas or a massive payment from one international bank to another, Ripple was able to perform the task faster and more affordably than normal channels. Even months ago, it could increase efficiency by orders of magnitude.
xRapid makes it easier for individuals and institutions to use this powerful functionality. Like many other excellent cryptocurrencies, Ripple has had capabilities like this for quite some time. The problem was that many people who would benefit from these functions simply couldn’t or didn’t know how to use them. xRapid is a big step in the right direction.
We don’t know if enthusiasm for xRapid will continue Ripple’s upward trajectory but we have a feeling that this will help solidify Ripple over the price valley it has just climbed up from.
*Information in this article should not be taken as investment advice.