Yesterday, XRapid went live. Ripple announced that three financial institutions were now using XRapid. But the price didn’t make the huge moves that many investors were anticipating. After the announcement, XRP (XRP) made slight gains, pushing above $0.60 before dropping back below $0.58. Today, XRP is trading at around $0.56. So why hasn’t XRP made any major moves in price, in spite of an announcement that has been awaited all through the year?
There are a number of factors behind it, the biggest one being trading psychology. The companies that went live with XRapid are the same ones that have been testing it all along. This means that whatever was announced yesterday was pretty much expected by the market. Basically, this news had already priced-in during the last pump. The only way that the price would have surged is if ripple announced that several banks were going live with XRapid. This would have triggered a new wave of excitement that would have seen XRP pump, and outpace its September 21st rise that saw it push up by over 60% within a few hours. It would easily have broken above the $1 mark.
However, that doesn’t mean that XRP (XRP) will not moon going into the future. The launch of XRapid yesterday marked the beginning of a journey that will see ripple take over the cross-border payments market. That’s because now that XRapid is live, banks will be driven by market forces to adopt it. They will start taking it up because they are for-profit organizations and they need to cut costs and stay competitive.
It is projected that any institution that uses XRapid can save up to 60% of the costs incurred in cross-border payments. That’s a huge incentive for banks since it adds a huge amount to their bottom-lines. Competitive pressures will draw in banks into using XRapid in order to stay in business. That’s because, when one bank starts using XRapid, it will pass over those benefits to its customers.
This will put pressure on other banks and they too will start using XRapid, in order to stay competitive. Failure to move with the times will see them lose clients to the banks that are using it. As these factors draw in banks, the price of XRP will push upwards over time.
There is also the fact that ripple already has laid the groundwork in key markets that will drive up the adoption of XRapid going forward. For instance, through SBI, ripple stands a strong chance for adoption in the Japanese market. It also has a major edge in India where it has partnerships with a number of key banks in the country. This means that Asian adoption is to a large extent guaranteed.
Once this takes shape, the value of this crypto will rise significantly going into the future. That’s because adoption in these markets (globally significant) will open the floodgates for adoption in other markets as well.
In essence, the journey to the moon for XRP has just begun. Its true value will be unlocked as its adoption gains traction. Going by the factors discussed above, it won’t be long before XRP hits the moon. The future of XRP is great, and long-term holders stand to reap big from its growth.