Ripple’s XRP may be grinding lower at the time of writing. However, this digital asset has shown great potential to the extent that experts and analysts in the market see it becoming the king of cryptocurrencies by displacing Bitcoin (BTC). The digital asset is issued by the San Francisco-based blockchain company, Ripple. The company has for a while now been referred to as the “banker’s delight.”
Bankers across the globe have grown a liking and a preference for XRP. Ripple’s blockchain system provides an alternative to the traditional money transfer system, SWIFT. The banks are growing weary of SWIFT due to the high cost of international transfers coupled with the long time taken to process and complete transactions. What XRP offers the commercial banks and other payment institutions is the ability to send money across the border almost instantly and at a minimal cost as possible. These two factors save the banks money while the blockchain technology increases the transparency hence increasing customer trust.
Bitcoin has been improved over the year to solve some of the above issues. However, for a large digital asset, it is not easy to carry out upgrades due to the large community. Upgrades in the protocol have always resulted in hard forks that rarely solve the challenges facing BTC. Therefore, the biggest question is, can Ripple’s XRP overtake Bitcoin and take over leadership in the market in terms of market capitalization?
The above question is not a straightforward but we will try to remain as factual as possible. The adoption of XRP across the world is immense. The company said in mid-2018 that it has control of more than half of India’s market. In addition to more than 100 partners registered with Ripple’s RippleNet. Recently, Ripple announced its entrance in the Middle East by setting up an operational base in the region’s economic hub, Dubai. Similarly, the company is currently courting the expansive Asian region. An executive of the company said earlier this week that Asia has a high appetite for XRP and both RippleNet and xRapid solutions.
What makes XRP tick?
Ripple boasts of the fact that its protocol has no forks. The digital asset is governed by a team of professionals within a professionally run company that has been registered and currently based in San Francisco, United States. Forks in the Bitcoin community are a hindrance to growth in terms of protocol upgrade and other related improvements. While most hard forks lead to the creation other assets, Bitcoin tends to get stuck with its challenges thereby limiting adoption. The business community is still struggling to accept BTC as a form of payment 10 years since the first Satoshi paper was published. This is continuously eroding both merchant and customer confidentiality in Bitcoin being a new currency system in the global economy.
What is stopping XRP?
The current 2nd largest digital asset, XRP has not been cleared from being a security token. Regulators have not made up their minds either to categorize the asset as a security or a cryptocurrency. This has for the longest time held XRP back, for example, the largest exchange in the U.S. Coinbase has not listed XRP as a tradable asset. If the asset can get cleared, XRP is likely to continue with its exponential growth to the point that it will surpass Bitcoin’s market capitalization. The introduction of an XRP ETF will be a huge boost as well.
Source:Crypto Recorder .
Ripple price analysis: How far can this lethargic range-bound trading go?
- Ripple price is forced to trade in a narrow range between $0.2700 and $0.2750.
- The sideways action has the potential to last through all the sessions on Thursday if technical levels remain the same.
Ripple is stuck in a very narrow range between $0.27 and $0.28. The Asian trading session has seen very minor action actions on either side. From an opening price of $0.2721, XRP has only managed to rise to $0.2730 (intraday high). A low of $0.2718 has been touched on the day but XRP is dancing with $0.2727 at the time of writing.
XRP is also locked between the Simple Moving Average support and resistance. Where the 50 SMA on the 1-hour chart is offering immediate support while the 100 SMA caps movement at $0.2750.
The sluggish movement witnessed with the Relative Strength Index suggests that the current sideways trend will continue dominating XRP’s activities. Similarly, the Moving Average Convergence Divergences puts emphasis on the same ranging trend by holding tight on to the mean line. Apart from the 50 SMA, other support areas include $0.27, $0.2650 and $0.25.
XRP/USD 1-hour chart
Ripple Exec: MoneyGram to utilize Ripple’s On-Demand Liquidity (ODL)
- MoneyGram has ODL up and running in countries like Mexico and Thailand.
- Ripple claims that 24 of its 300+ clients have already signed up for ODL.
Marjan Delatinne, Ripple’s global head of banking, is giving new insight into MoneyGram’s use of the XRP-based payment solution – On-Demand Liquidity (ODL). Speaking at the Asia House Global Trade Dialogue in Singapore, Delatinne said MoneyGram is already working with ODL in countries such as Mexico and Thailand. MoneyGram, for instance, is a case that went live recently.
They are using this solution in a few markets, as I mentioned in more exotic markets like Mexico, Thailand – and they see already a great efficiency decrease in the costs in the way that the treasury and liquidity management is happening.
Delatinne gave a brief idea about how ODL functions. He also highlighted the influence it could have in the world of cross-border payments, specifically in emerging markets.
So imagine you’re a payment service provider and you want to send $100 to Mexico. You use our native digital asset, which is called XRP, as a bridge currency between the two fiat currencies. So changing from USD to XRP and immediately after to the Mexican peso.
This is really revolutionizing the way that money is handled because today FX and the transfer of money are not happening at the same time. And this creates a lot of exposure, especially to low margin organizations…
This still, of course, needs to be more commercialized. But this is really shifting the way that we think about the transfer of money compared to what is [happening] today.
ODL was launched in October of 2018. According to Ripple, 24 of its 300+ clients have already signed up for ODL since then.
Kyoto University becomes Japan’s first Uni to run XRPL validator
Ripple’s aggressive marketing and partnership strategy, in addition to the banking sector, has branched out into other fields as well, with its University Blockchain Research Initiative (UBRI) aiming to bring universities closer to blockchain, cryptocurrencies, and the digital payments landscape. As part of this venture, Japan’s Kyoto University has now announced that it will be the first Japanese university to run an XRPL validator.
The information was shared by Emi Yoshikawa, Senior Director, Global Operations at Ripple, whose tweet also read,
According to Kyoto University’s official announcement, the General Survival School (Shishukan) will co-host the seminar with Ripple’s David Schwartz CTO as a lecturer.
As an XRPL validator, the university will be able to participate in Ripple’s existing consensus process that supports the ongoing decentralization of the XRP Ledger. At the crux of the protocol, every member using the XRP Ledger must agree on the latest state of every transaction, without needing a central operator. Similar to existing nodes on the Ripple network, Kyoto University will also be ranked on the basis of availability, consistency, reliability, and transparency.
Interestingly enough, Ripple used to run a majority of XRP validators nodes, which have now been taken over by 974 nodes over time, according to Bithomp. In addition to Kyoto University’s involvement in the blockchain space, Yoshikawa publicly supported the notion of launching XRP Ledger validators at universities throughout Japan. She said,
“University student Rippler, please make a suggestion to your university teacher! It will be a practical project that will give you a better understanding of how XRP Ledger works.”