As it stands, Ripple is currently holding strong as the third most valued cryptocurrency, just behind Bitcoin and Ethereum.
Ripple’s cryptocurrency, known as XRP, is the digital currency is specially built for enterprise use, and it offers banks and payment providers an efficient, scalable and reliable liquidity option for making global payments for emerging markets.
How Ripple Stands Out From Other Altcoins
Ripple is notably different from the vast majority of other cryptocurrencies.
Unlike other digital currencies that seem to be designed to overthrow the current financial system, it stands out as the company that aims to partner with and offer improvements to the system.
The way Ripple functions also has some significant differences to other cryptocurrencies. Unlike most other coins which require mining, XRP is a pre-mined coin.
As a result, Ripple is less decentralized than other digital currencies. This feature has resulted in criticism from many for the lack of mining opportunities it creates, and also for going against the spirit of decentralization.
However, this feature also provides the currency with some immunization against the volatility we witness in many other cryptocurrencies as a result of ‘pump and dump’ schemes. Many have chosen to invest in Ripple simply as a result of its stability compared to other coins.
The Platform Is Still Adding More Clients To Its List
The Ripple team is made up of finance, tech, and fintech experts. As a result, it’s hardly surprising to hear that a significant proportion of Ripple’s success is likely down to the team’s strong emphasis on partnerships and customer acquisition.
Ripple currently has upwards of 75 commercially deploying customers. The team has recently announced that two payment companies will be starting to use xRapid for select transactions.
These companies are:
- IDT Corporation – A publicly-traded firm specialized in providing international long-distance payment services.
- Mercury FX – A firm offering discount rates on foreign exchange transactions.
xRapid is a Ripple product that uses XRP as a bridge currency to offer on-demand liquidity when transferring money and settling global money transfers. This enables real-time payments, while drastically lowering costs.
This follows the recent announcement that MoneyGram will also be piloting the platform. Ripple’s CEO, Brad Garlinghouse, has described this as a strategic partnership designed to demonstrate the ability for XRP to reduce costs for money transfers.
As a result of these recent developments, the XRP cryptocurrency has witnessed a sharp increase in value over the past few weeks. It has recently soared by over $8 billion.
What Else Is Pushing Up the Price of XRP?
In addition to Ripple’s partnership success, there are several other factors that are likely to have positively influenced XRP’s value.
- The increasing popularity of altcoins – Now that that growth of Bitcoin has slowed and many of the major cryptocurrencies have hit their resistance barrier, many users are searching for new investment opportunities.
This has led to major price increases for many cryptocurrencies. Considering that XRP is one of the oldest, most well-known, and most established cryptocurrencies, there’s little surprise that its value has soared so rapidly.
- Ripple’s increasing popularity in Asian markets – A large proportion of Ripple’s sharp price gains are a result of Asian crypto gamblers.
Rob Viglione, a founder of ZenCash, the secure blockchain platform revolving around money, messages, and media, recently stated:
“The entire cryptocurrency industry is exploding and Ripple has done a great job positioning itself as one of the key entry points for institutional investors.”
- Ripple is already a useful product that can be utilized right now – While many altcoins are backed only by ideas, promises, and public belief, Ripple already has some of the world’s biggest financial institutions on its customer list.
This makes the cryptocurrency stand out from its many competitors that are being traded based on speculation only.
The Future of Ripple
For the moment, Ripple seems to have stabilized around the price of $1.35 – a massive increase from its value of just over $0.0066 this time last year.
Ripple has many features that make it stand out from its competitors, and it has most certainly established itself as one of the most interesting cryptocurrencies to keep track of over the coming months.
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