It has been a great year for cryptocurrencies, and the 3rd largest crypto XRP has followed that trend as well. Ripple is up more than 270% year to date and has passed $26 billion market capitalization, however, compared to other cryptocurrencies it has lagged behind in the last few weeks.
Ripple’s and Bitcoin have very different goals. Both give users the ability to control their own assets using cryptocurrencies, however, Ripple was designed to be much faster and to have the lowest possible commissions. These attributes make it extremely attractive for banks. Banks use XRP to move large amounts of money quickly, at a very low cost. Ripple is said to eventually become a replacement for SWIFT which is the current standard for international bank wires.
XRP has been trading flat for a whole year but its price surge has started in November. On the first day of the month, XRP was trading at $0.23 but by November 24 its value had surged 220 percent, reaching highs of $0.76, according to CoinMarketCap. Among the key factors behind the coin’s hike were the XRP’s $45.6 million buybacks.
Bitcoin has already broken its all-time high price record of $19,783 and is trading at around $23,000 at the time of writing this article, however, XRP crypto is still down a lot from its all-time high of $3.84 which it reached in January 2018. Analysts are predicting that due to the rise in the interest in cryptocurrencies more funds will be flowing into the crypto market and XRP will be able to reach at least the last all-time high mark in the year to come. If these prediction comes true it means that Ripple will be adding more than 600% in the year to come.
Earlier this year, Will Meade, a former Goldman Sachs employee and billionaire hedge fund manager, made his first crypto purchase, buying XRP and expecting it to soar in value in the near term: “I made my first crypto purchase ever this week $XRP Ripple. I know very little about crypto, but I believe a rising tide lifts all boats, so if Bitcoin goes back to its all-time highs then XRP should as well and that would be a 15 bagger 1,500 per cent.”
Lately, Ripple has been partnering up with a lot of big-name banks such as Banco Santander (SAN), JP Morgan (JPM), HSBC Holdings (HSBA), Mizuho Financial Group (8411) and MoneyGram. Recently India’s largest bank, HDFC Bank Limited (HDB) and US 2nd largest bank: Bank of America (BAC) had joined RippleNet as well. All of this means that it’s more likely that all financial institutions will be accepting XRP as default for their international transfers. If this comes true billions if not trillions will be flooding into Ripple which makes it even hard to predict approximate price marks that XRP might be reaching. This might not be happening in the 2021 but some credible XRP analysts like Credible Crypto are setting price targets such as $14, $50 and even $150.