There are many different companies that are currently operating in the cryptocurrency market. One of them is Ripple, that is trying to offer services to financial institutions around the world, including banks. With its wide range of services and products, Ripple is allowing firms to reduce costs and transaction times every single time they want to process cross-border payments.
The current system for sending funds around the world is very costly and it takes long periods of time. However, things are getting easier, cheaper and faster with the XRP digital asset.
Although we have been in a downtrend since the beginning of January 2018, XRP seems to be well positioned for the future. During the second half of 2018, the market dropped even further but XRP was able to remain relatively stable during this bear trend.
There are several exchanges that are using the digital currency in order to reduce transaction costs and allow individuals to have an easier way to move funds from one place to another. There are also several financial companies that are ready to use XRP and offer better services to their clients.
The number of transactions on the Ripple network has been growing during the last months. On January 29, XRP reached 875,057 transactions. This is the largest number of XRP transactions processed since September 2018.
If there is a growing demand from banks and institutions around the world, the price of the XRP digital asset is also expected to grow. The virtual currency is able to scale up to 1,500 transactions per second (TPS) compared to Bitcoin that can only handle 7 TPS.
Additionally, Ripple has been working in order to expand the network of partners that it has all over the world. It has invested around $300 million in a RippleNet accelerator program that provides incentives to institutions that promote Ripple and its payment system.
Moreover, during 2018, the company sold $535.5 million of XRP to the market. $40 million was sold to institutional investors and $89 million through crypto exchanges during the last quarter of 2018.
It is also worth mentioning that there are some partnerships and developments associated with Ripple that allow investors to be bullish about the future of XRP. Binance started to offer XRP-based trading pairs at the exchange, one of the largest around the world in term of trading volume.
CoinGate, a crypto payment processor, has also added the XRP digital asset as an option for merchants to accept payments. Furthermore, TransferGo explained that they want to become a company that processes real-time payments. Thus, they mentioned that they see Ripple as a strategic partner to achieve this goal.
At the time of writing this article, XRP is the third largest cryptocurrency in the market. The virtual currency was in the second positions in terms of market capitalization but Ethereum (ETH) was able to take its place. Each XRP can be purchased for $0.307 and it has a market cap of $12.65 billion according to CoinMarketCap. Ethereum has a market cap $20 million dollars’ larger than the one of XRP.