Ripple had an exciting week so far. It started with the liquidity index for XRP surging beyond 9 million, setting a new record high. Then it got a mention from the Consumer Financial Protection Bureau, signaling that the XRP is perceived as being credible. Now, its future utility is expected to rise, which can lead to further surges on its liquidity.
How sustainable are these positive developments?
Liquidity of XRP Hits New Record
Based on the recent reports, the liquidity of XRP is now beyond 9 million because of Bitso. The Mexican crypto reportedly stimulated the growth of Ripple and Moneygram’s s project.
This is why an additional million to the liquidity index transpired easily. The daily profits reached 92 percent.
Apart from Ripple, however, a strong exchange in the Philippines, Coin L. also witnessed a sharp increase in its liquidity index.
What does liquidity mean anyway? Why achieving a new record of liquidity Is good thing? What could further push liquidity higher?
Utility to Be the Main Success Driving Factor of Ripple in 2020
The cryptocurrency space has long evolved in various ways. Bitcoins at one point were for purchasing pizzas, but now they make it possible for criminals to use in engaging in illegal activities. In 2017, Bitcoins were perceived as a fast way to earn profits because it reached its all-time high prices.
However, speaking in an interview, Ripple CEO Brand Garlinghouse claimed that speculation and illegal use would cease to be the reasons why cryptocurrency projects are taking off, as they mostly have been in 2019.
Instead, the CEO believes that in 2020, the cryptocurrency’s utility will be the main growth factor. The utility will attract more real patronage and more authentic growth. He explained that utility refers to how the digital assets were capable of solving real problems that real customers have. Unless the cryptocurrency projects provide real service, he does not think the whole market will ever grow next year.
With the provision of XRP-powered payments platform, On-Demand Liquidity, a higher volume in 2020 can be reasonably expected, as more corridors open up.
However, as early as now, there are already problems that Ripple customers are experiencing that XRP is capable of solving. One of these is high remittance fees. SendFriend, a major remittance company in the United States, and also one of Ripple’s valuable clients, have already utilized the platform on-demand liquidity to reduce remittances by a significant 80 percent.
SendFriend CEO, David Lighton spoke at the Ripple’s University Blockchain Research Initiative Connect Conference and claimed that traditional remittance fees were genuinely steep. However, because Ripple’s blockchain-based ODL makes the need for working capital obsolete, international money fees are capable of being lowered at least by 75 percent. Working capital requirements are usually the reason behind high fee charges in remittance transactions.
XRP Has a Great 2019
As the year-end approaches, Ripple’s plans for 2020 are increasingly coming into light. There is a general sense that it will focus on being functional and of greater service. However, before 2020 truly arrives, Ripple’s achievements this year should not be overlooked.
Ripple certainly engaged in very strategic moves in 2019, including but not limited to partnerships and investments that propelled Ripple into new heights. These partnerships and investments are the reasons why Ripple is currently at a place that is prime for more growth and development in the next year. These are the reasons why Ripple can serve its customers better in the near future.
With utility being its main focus, 2020 will lead to a major shakeup of the digital assets industry, wherein Ripple can play a leadership role. Utility can determine which projects will be successful and thrive, and Ripple is ready to offer the most useful of projects.
The movements that Ripple had undertaken this year all naturally put it into the radar of many, even that of the US Government. Ripple can mark 2019 as the year that its XRP received legit attention.
A US governmental agency, the Consumer Financial Protection Bureau, cited XRP in a critical document. This is a record-breaking moment for the company, as this happened the very first time in history. The mention is not even minute and easy to overlook. Instead, the agency described XRP in a very favorable light.
It describes XRP as a form of trustworthy remittance tool in the future. It will be capable of solving many of the remittance issues people face now.
The government said XRP can process transactions in a swift manner. XRP also makes it easier for companies to affordably and conveniently carry out money transfers yearly.
Ripple Should Address Massive XRP Transactions
The only thing Ripple should probably be more mindful of and address, are the massive XRP transactions that the community does not view in a positive light. Of recent, there have been exposés of large XRP transactions happening on anonymous accounts that the Whale Alert made.
According to Whale Alert, a total of 150 million XRP exchanges happened between two anonymous accounts, which the XRP community found enraging. Based on the comments of the users, this kind of transaction is harming the price of the token.
Adam is a passionate cryptocurrency writer.
