Crypto Price Prediction: Can XRP Hit $3 Price Again?

 In Adoption, Cryptocurrency, Ripple

Ripple’s XRP is a popular cryptocurrency due to its use case, in that the asset allows users to transfer value anywhere in the world with next to no fees or transaction times. XRP is a utility token, but isn’t exactly one designed for investing in and trading like Bitcoin. At least, not at first glance. 

Back in January 2018, XRP was worth just under $4 per coin. Those who invested earlier, when it was at less than $0.50, certainly enjoyed the profits. However, the asset and currently around an impressive price of $0.53 as of November 23, 2020. Many have wondered if the asset will ever recover, and there appears to be some hope. Let’s get into why. 

 

What Makes Ripple Valuable? 

As mentioned, Ripple’s cross-border technology means XRP is a valuable asset for banks and other financial groups that transact internationally. In fact, considering XRP takes 3-5 seconds to transact compared to the days it takes to verify an international fiat transaction, banks are already using it in place of the traditional SWIFT system. 

2019 was a strong year for Ripple in terms of partnerships. The company united with efforts like global money transfer company MoneyGram, and raised $200 million from groups like SBI Holdings and Tetragon. Groups are vying for its On-Demand Liquidity (ODL) tech that allows for instantaneous transfers. But if all of these companies are invested in Ripple, why is XRP’s price still so low? 

The answer isn’t that the technology isn’t valuable – it’s because of inflation. As of now, XRP has the highest inflation rate of every top cryptocurrency, hitting 20.5% a year. Ripple owns over half of the XRP in existence and sells it off each quarter to pay for advancements. Due to the hundreds of millions of XRP going into the ecosystem every quarter, its value is diluting, similar to how inflation damages the United States dollar value. 

This inflation problem is the most likely reason it’s keeping the value of XRP low, despite its continued use and various new partnerships. However, there’s still a chance for the price to rise, even if it takes a few years. 

 

Ripple XRP is Still Under $0.55; Can It Hit $3 Again?

Keep in mind that with all of these partnerships and developments, most associates are only testing the use of XRP in their financial systems. Very few are utilizing XRP full time, which means it could be a while before the price goes up due to use case. 

However, one must remember that XRP’s use case is a global one. Eventually, banks and financial institutions worldwide may start to use it, increasing the price as they buy into the network. On top of this, once all of these networks are established, Ripple won’t have to sell as much XRP as it does every quarter, so they won’t be diluting the value as much. 

Of course, this is assuming XRP becomes the international currency of choice for financial institutions. Part of the appeal of Ripple over other cryptocurrencies like Bitcoin is that it’s stable. There’s less volatility to deal with, making it an ideal way to move money internationally. 

One popular XRP enthusiast and trader, Robert Art, has tweeted a Ripple price prediction in which he says XRP will go above $10 in a matter of time. 

Basically, Art believes in the inherent value of XRP and that as companies take it on, the price may rise in due time. 

 

 

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