If you are glued to the cryptocurrencies market prices at the moment, then it is not the best of times for Ripple XRP. At the time of writing, Ripple was down by almost 30% amid a cryptocurrency market crash and was trading at around $0.75.
Ripple XRP prices are being impacted due to the overall cryptomarket suffering from an influx of negative news of late. News that South Korea would not be banning cryptocurrencies was encouraging, but then the message from the Indian Finance Minister, Arun Jaitley, was painted in a negative light to convey that there was no place for cryptocurrency in the growing digital economy of India.
However, he clearly mentioned that India was open to exploring the applications of blockchain technology. Somehow, this is not being taken as a positive for Ripple XRP, which is so different from other cryptocurrencies. There has been a spate of other positive news for XRP but nothing is able to stop the plunge in the Ripple XRP price at the moment. However, there can be no denying the fact that in the long term, digital currencies that offer real-world utility shall stand out. Ripple XRP appears to one of this promising bunch.
Ripple had already made clear that 2018 would be the year of action for the company and it continues to make inroads into its plans, which includes making XRP the standard for international transfers of value.
XRP Growing Through Partnerships
The company shared the news this week that Ripple XRP has been exclusively selected for testing the beta version of SBI Virtual Currencies—the newly released digital asset exchange of Tokyo-based SBI Holdings Inc (TYO:8473). The exchange was launched on January 30 and is designed to provide a reliable exchange for both its institutional customers and individual digital asset buyers in Japan.
This is a big boost to the XRP brand and adds to the growing global liquidity of the digital token.
SBI Virtual Currencies will use XRP as the only digital asset supported at launch because of the strong belief that SBI Holdings has in XRP’s potential as a faster and cheaper mode of payment than any other digital asset, with the ability to grow in scale.
XRP’s strong institutional use-case and scalability (1,500 transactions per second), coupled with the growing demand for XRP in Japan, made the digital asset a natural fit for the launch. (Source: “SBI Virtual Currencies to Exclusively List XRP at Launch,” Ripple, January 30, 2018.)
Just this week, Ripple XRP was also accepted by the biggest cryptocurrency exchange of Dubai—BitOasis. The exchange said that it has decided to introduce XRP trading to meet the increased demand from its customers.
With the growth of the remittance market, Ripple XRP attempts to fulfill the need to make real-time, transparent, and cheaper payments around the world. And it keeps on gaining new partners in the process.
Last week, Ripple announced two new partners—IDT Corporation (NYSE:IDT) and MercuryFX, which shall use Ripple’s “xRapid” ecosystem that is designed for payment providers and other financial institutions to minimize their liquidity costs while improving their customer experience.
IDT Corporation and Mercury FX will now use xRapid to settle retail remittances and corporate transactions quickly. The new companies join Moneygram International Inc (NASDAQ:MGI) and Cuallix, who will use XRP in their payment flows, to enable on-demand liquidity for global payments. (Source: “More Global Payment Providers, IDT and Mercury FX, Sign Up to Use XRP,” Ripple, January 24, 2018.)
As the digital token gains more acceptance among organizations and gets listed on popular exchanges, that is bound to push XRP prices higher in the year. Although, at the moment, prices may seem to be totally disconnected from what is happening out there in the real world.
While the listing of XRP on SBI Virtual Currencies and BitOasis may not appear to impact the price much, it could make a huge difference once the market is out if its bear grip.
As we have regularly emphasized, it is the long-term utility of digital tokens that should be taken into account when arriving at their valuation. Short-term price movement may not be of much significance as XRP is moving in line with the general pessimism surrounding cryptomarkets right now.