Coinspot has joined the growing list of exchanges listing XRP fiat pairing. The exchange has via twitter that they are doing this in celebration of their lower fees that now stand at 0.1% of all orders.
While the exchange has in the past allowed investors to buy XRP (XRP) using fiat, this is the first time that they are now allowing for market orders placed in Australian dollars. This move by Coinspot is welcome news by the XRP community. It adds to the growing list of exchanges that are offering XRP fiat pairs, including Bittrex in the United States. Several others like DCEX are now using XRP as a base currency.
The likely implication of these moves is that in the near future, most of the XRP trading will be done in fiat, or against other altcoins with XRP as the base pair. As such, XRP stands the best chance of decoupling from bitcoin (BTC) relative to the other altcoins.
Decoupling is great in that XRP (XRP)’s valuation will in the long-run be based solely on its own fundamentals, and not the value of bitcoin (BTC). XRP (XRP) does have a very high fundamental valuation relative to most other coins in the market. It is the only crypto that has a head-start in disrupting the banking industry. So far a number of large banks, including Santander are using XRP, and many others are testing ripple’s XCurrent and will move to XRapid in the future, for the extra benefits that it offers, including lower costs.
Simply put XRP is moving to become the standard in cross-border payments. As this use case become more pronounced, the intrinsic value of XRP (XRP) will grow, and when valued independently of bitcoin (BTC), its value is unrivalled.
Besides, with more fiat pairing, XRP will become more stable and, therefore, better positioned to serve as a liquidity tool for businesses looking to adopt it for payments. Part of the reason why cryptos have low adoption is because of their high volatility, which mostly comes from the fact that they are pegged to bitcoin. With more fiat pairings, XRP is bound to become more liquid, and with more liquidity comes price stability. A stable priced XRP (XRP) stands a massive chance for adoption, across industries, which will push up its valuation going into the future.
However, these benefits are long-term in nature and will mostly favor investors that get in early, especially now when it’s trading at under $0.50 a coin.