An overall potential performance of the price of XRP, which is now trading at around $1, has fuelled much speculation, with most users observing that it is just a matter of time before it starts to compete with the leaders by the market capitalization. As of today, 12 February 2018, Ripple overtook Bitcoin Cash and now ranks No.3 among the leading cryptocurrencies.
Over the past few years, a rise in the XRP to USD price has been witnessed, with a number of experts predicting that XRP could soon catch up with the current market giant – Bitcoin. But the big question that everyone should ask themselves is whether Ripple could soon replace Bitcoin and if the price is expected to hike.
A year ago, in January 2017, Ripple’s XRP was being sold at Bitcoin exchange at just $0.0065 per one token. This would be followed by a period of one whole year that witnessed this virtual coin skyrocket to an all-time high of $3.84 on the 4th of January 2018. This represented an increase of almost 64,000%. The month of December 2017 was a banner month for Ripple and its native asset, XRP. The first rise was seen between 12th and 13th of December when Ripple leaped from $0.27 to an incredible $0.51, which translates to an 84% rise. It continued to grow, and at one point reached a resistance barrier around the mark of $0.75.
Various crypto experts have been sharing their predictions on this matter, with some predicting that XRP could soon rise above Ethereum’s ETH coin to be crowned as the second largest cryptocurrency based on the market capitalization. This is expected by the end of 2018. Although Ripple has been hit just like other cryptocurrencies during a severe market correction, here are some of the reasons why the explosion of XRP’s price is still expected.
The Media and Various Partnerships
Ripple is one of the virtual currencies that has truly demonstrated that thriving in this market does not only depend on customer acquisition and partnerships. At the moment, Ripple has close to 100 commercially deploying consumers. But besides creating that huge customer base, Ripple has been able to generate a buzz in the market by properly utilizing its strategic partnerships. A perfect illustration is its partnership with Amex that was announced in December 2017.
Ripple has also not slowed down on its efforts with the media. It just acquired former Facebook’s corporate communication manager, Tom Channick as its head of communications.
Its Consumer Grasp and Functionality
If there is one thing that will lead to the skyrocketing of Ripple’s price, then it has to be its great functionality and customers’ awareness. A number of coins currently on this market are purchased and sold based on absolute cogitations. What this means is that such currencies are backed up by public beliefs and ideas, and that should not be the case.
Ripple has been strategically placed on the multi-pierced solution that most financial organizations are looking for. This is why Ripple has risen to become one of the most useful products currently on this market. With its low transaction fees and a four-second transaction speed, Ripple has continued to receive much adoption from general consumers. The manner in which Ripple itself works has also contributed to the rise of XRP’s price. Being a pre-mined coin, which XRP is, goes contrary to the ethos that is used in this industry. This has also been criticized by a number of competitors since it creates lack of mining opportunities.
It is also very imperative to note that Ripple retains close to 20% of what XRP supplies to the market. Based on the reduced number of XRP coins, Ripple may still enjoy a price rise even if there is a major decline in the rates of major cryptocurrencies.
Major Support From Asian Market
Asia has been a major contributor in the entire crypto market, especially on this new sensation called Ripple. Ken Rapoza, a renowned expert in this field, once said that crypto consumers from Asia are soon going crazy for Ripple. But looking at this claim keenly, it has some facts to support it. Just some few months ago, SBI Holdings partnered with Ripple to create SBI Ripple Asia that would serve various markets in Taiwan, Korea, Japan, and China. It would also extend its services to the ASEAN countries by creating a professional engineering and sales group, which will have the responsibility of installing and selling solutions needed for cross-border bank payments.
According to Polymath’s CEO, Trevor Koverko, many consumers feel comfortable with the title ‘Ripple’ without forgetting its great technology. Many consumers in this vast Asian market have begun to notice how beneficial Blockchain technology can be to businesses. This is what has made Ripple the top winner in this region.
Before the news of Bitcoin futures trading at CME and CBOE, the virtual currency experienced a $10,000 crack. The attention that has been created by the mainstream and social media has drawn a new breed of traders to this market. Most of these newbies have begun their crypto walk by investing in the three competing currencies like Ethereum, Bitcoin, and Litecoin, contributing to the price rise of all altcoins. The rise of Altcoins is one of the reasons why the price of Ripple’s XRP is also expected to go high.
XRP Could be the Next BTC
On the first day of February 2018, Ripple’s XRP traded at $2.93, the price that a group of experts has predicted to rise to $5.06 before the end of 2018. However, according to Mr. Fred Schebesta, the outlook must be more unsheltered for Ripple than what is predicted. His market cap prediction when it comes to Ripple is that they can continue making more coins, which will, in turn, lead to the rise in the market cap. He also suggested that this might lead to the fast burning of coins.
Ripple has for sure proven to be one of the most growing virtual currencies and one that is fascinating to watch. However, based on the natural velocity issue that the coin is currently dealing with, there is actually no best objective model for valuation that can be used for XRP. It could even rise five times before the predicted time! Who knows?
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