Ripple is fulfilling the need for a multi-trillion dollar means of payment using their digital asset XRP, says the company’s head of global institutional markets in a recent statement. The XRP’s utility in the current market is what gives the cryptocurrency its edge in being a driver for value creation, Breanne Madigan believes.
In a recent interview with American financial magazine Barron’s, the Ripple executive delved into why XRP will grow greater in value as time passes. She believes that the case for investing Bitcoin and their investment strategy can bring in the most returns for their investors.
Madigan also urged new cryptocurrency investors and newbies to study certain individual digital assets before investing in them. She says that they should seek to understand the utility of these digital assets and their core value proposition. Also, she recommends analyzing the problem these coins are solving and the markets they can be used for.
She told the outlet that the Ripple XRP is a great example of a cryptocurrency that can and is solving a real-world problem. She used the trillions and trillions of dollars of trapped capital payments as an excellent market opportunity that XRP is solving to hammer this point.
She says that it is a huge addressable market, making it an amazing driver for creation. She also mentions how Bitcoin is addressing a huge market value storage which is currently dominated by gold.
As of writing, Bitcoin currently has a market capitalization that stands at $353 billion, while gold is twenty-five times bigger at $9 trillion. In comparison, XRP currently has a $21.4 billion market capitalization, making it the third most dominant cryptocurrency.
This confidence in XRP’s utility and usability as a multi-trillion dollar means of payment may be the result of the gains it experienced in the last month. This may have also been part of Ripple’s plan for an aggressive expansion, especially for XRP’s On-Demand Liquidity (ODL), as said by the company’s general manager.
It can be recalled that XRP topped the charts in terms of earnings for the month of November with record gains at 169%. This meant that XRP experienced a 225% increase in value for 2020.
This high performance was swiftly followed by an announcement from Ripple General Manager, Asheesh Birla, regarding plans for an aggressive expansion for the cryptocurrency’s utility, especially as an ODL.