The cryptocurrency market stares at the abyss as the market has lost more than $60B USD in just last week. On Monday, Nov. 19, another bearish wave hit the crypto market pulling the overall valuation below $150B USD. Almost every cryptocurrency on the index, including Bitcoin (BTC), is seeing huge losses, a minimum over 10%. However, one cryptocurrency which has managed to perform relatively better is XRP.
While many cryptocurrencies lost over 20% in a week time, XRP has held the loss in a 10-13% range. The reason behind XRP’s strong show is a string of deals made by its parent company Ripple Labs in the recent past.
XRP-Powered xRapid Payment Service Getting Traction
Ripple Labs has several blockchain-based products in its offering. Chiefly, these products facilitate instant global transfers at low cost. However, Ripple xRapid payment service uses the Ripple native tokens (XRP) to facilitate instant cross-border payments.
The xRapid cross-border remittance solution is built atop Ripple’s proprietary blockchain network. As Ripple defines:
“xRapid is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience. Because payments into emerging markets often require pre-funded local currency accounts around the world, liquidity costs are high. xRapid dramatically lowers the capital requirements for liquidity.”
A number of global money transfer companies have pledged their support for xRapid. It includes household names like Western Union, MoneyGram, Mercury FX, and Cambridge Global Payments.
The latest good news for XRP was Coinbase adding XRP token to its custody solutions offering. Note that Ripple (XRP) is not available to trade on the Coinbase exchange and is just a part of its custody offering.
Moreover, two days back, London-based FinTech startup Amun announced to list a crypto exchange-traded product (ETP) of the SIX Swiss Exchange. This announcement turned out to be a major booster for XRP. It is because Amun has its 25% of total Swiss portfolio breakdown invested in Ripple (XRP).
XRP Price Reflects Growing Ripple Partnerships
Although Ripple Labs and XRP operate independent of each other, the XRP price movement still links to the company’s market positioning. With positive developments of the company, investors and traders usually find more confidence to purchase XRP.
Over the last year, Ripple partnered with several global banking and financial giants who joined RippleNet. The RippleNet is a consortium of financial institutions who pledge to use Ripple’s blockchain-based products. This consortium of financial institutions then works towards improving cross-border remittance services while using the blockchain technology.
Last year, Ripple managed to make solid inroads in the Asian and Middle East market. The company is also stretching its reach to some parts of Europe.
XRP Topples ETH to Grab the Number 2 Spot
During last week’s crypto market fall, XRP surged ahead to become the second most-valued cryptocurrency by market cap, after Bitcoin. Due to a constant stream of positive news coming from Ripple, XRP managed to hold against the strong bearish winds.
On the other hand, Ethereum (ETH) is facing a crisis in terms of scalability issues. Its much-awaited Constantinople hard fork got delayed to early 2019 which has caused further panic among investors. Ethereum is on a steep fall for the last week, which has further widened the market cap chasm between XRP and Ethereum (ETH).
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