Ripple (XRP) has been moving the crypto market in a new direction. Its noteworthy invasion into the global financial-services-industry could generate sufficient revenue to create an underlying value for its trading price on cryptocurrency exchanges.
Ripple’s Underlying Value: Set to Allay Fund Managers Concerns
Analysts and fund managers have been showing strong concerns over cryptocurrencies; blaming a lack of underlying value and the huge price volatility for their bearish sentiments.
However, Ripple is set to create its underlying value through its partnerships with financial services companies. At present, Ripple has three products: xRapid, xVia and xCurrent and Ripple will receive royalty payments from these companies for their products.
The potential to create instant transactions with lower costs is the key driver in enhancing companies’ confidence in the ripple’s blockchain technology.
The Deal With UAE Exchange Added to Traders Sentiments
The news of a deal between Ripple and UAE Exchange to improve cross-border exchanges added to traders sentiments.
UAE Exchange’s CEO Promoth Manghat said, “Incorporating Ripple’s blockchain technology into our payments systems will bring customers an enhanced, new payments experience,” Manghat said. “The early adoption of this game-changing technology allows us to offer a competitive service, as it will have an impact on the speed and cost of cross-border transactions.”
UAE Exchange has been facing increased cross-border payments, and they want to improve transaction time and costs.
According to estimates, UAE Exchange holds the market share of 6.75 percent of the $575 billion remittance industry. It is now predicted to be in charge of 10 percent of the total industry by 2020.
Several prominent financial services companies have recently announced joining ripple’s backed blockchain technology to improve their cross-border payments. Following the footprints of MoneyGram and PayPal, the fourth largest Chinese payment Services Company has recently announced their inclusion to ripple’s current network of over 100 financial institutions.
The Price Doubled from the Previous Lows
After experiencing a steady selloff during January and a big crash in early February, Ripple price has bounced back sharply since last Tuesday. The initial price plunge was a result of the broader selloff in the crypto markets and nothing notably specific to Ripple.
Its price bottomed around $0.59 on Tuesday, but the price rebounded and doubled on Saturday when it traded above $1.20.
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