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The XRP increased by almost 460% over the year after the regulatory authorities supported the cryptocurrency release company Ripple.
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Although the reception of Ripple products continues to grow, large banks choose a product that does not require the bank to touch the XRP itself.
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10 shares we like better than XRP ›
With a securities and exchange commission (SEC) against Ripple XRP (Crypto: XRP)In the “rear -view mirror” and the “National Bank” Charter’s application, the XRP Bulls believe that there are many impulses behind the token. Given that it has almost 440%in recent years, they have a point. So when XRP ranges in less than $ 3, is it time to buy now?
The Bull XRP tray seems convincing. After many years of regulation of uncertainty, Ripple in August. Finally resolved the litigation litigation with the SEC, creating a way for increased adoption in the traditional financial system – the key to a higher XRP price. This has always been the basis of the XRP investment dissertation: as more and more banks are receiving this technology, it will increase the demand for XRP and its price will be considered.
It’s not that simple. This is what I think many investors are missing: banks can use Ripple payment technology by never touching XRP.
Ripplenet, the most widely accepted Ripple product, does not require banks to follow or even briefly touch XRP. They receive many speed advantages, savings and efficiency increases and continue to use their desired currencies.
On the other hand, the Ripple Liquidity (ODL) product often directly uses XRP as bridge assets for cross -border operations. The ODL customer may send funds to the bank of another country without the need for a hassle and currency exchange costs and pre -funded accounts in other countries. Instead, XRP can be used as a mediator.
The problem is that the odl is not widely used by larger banks, which are actually important. It is intended for institutions with liquidity problems and, depending on the distributed value, remains a niche compared to Ripplenet.
This limits the effect of odl on XRP demand. Although it does not exist, I do not think the effect is as strong as many investors believe. The dramatic increase in Ripple technology banking is much more prone to Ripplenet rather than ODL.
Even if ODL adoption accelerates, there is an even bigger problem on the horizon: Ripple’s own stablecoin ambitions can take the XRP road or at least seriously interfere. The company’s pursuit of a national trustee bank charter shows that it wants to be at the forefront of what can be a huge wave of stable wave in banking. This is a smart Ripple step as Stablecoins can provide the same benefits offered by Ripple and by 2030. Can be a market of several trillion dollars, according to a Citigroup Analysis.