The cryptocurrency market has had its fair share of ups and downs. This includes price fluctuations as well as developments that have become all the rage. With the arrival of 2020, let us find out what crypto organizations expect from the next couple of months.
Ripple recently released their Insights blog on how XRP’s utility can act as a sign of a stabilizing market. The blog spoke about how financial institutions were harnessing the power of blockchain and digital asset technology to see tangible results.
The Insights blog addressed the growing digital asset economy and how institutions were taking notice of its advantages. Ripple also referenced Steve Mnuchin’s words at the WEF conference, where the US Treasury Secretary praised companies in the cross border payment space. Mnuchin’s words had a ripple effect across the entire industry, with many waiting for more positive news.
Apart from positive comments from institutional players, the market has also seen an increase in derivative trading. This has contributed to a bigger influx of capital and hence a more stable market. One of Ripple’s major game-changer has been the RippleNet, the vast network used for transactions. According to the latest Ripple blog:
“Ripple’s global network, RippleNet, is driving usage of the digital asset XRP. Banks and payment providers are joining RippleNet to leverage liquidity on-demand for cross-border payments, as an alternative to traditional pre-funding and improving processing efficiency.”
One of Ripple’s biggest wins was earned in Mexico after Bitso’s utility of the ODL. Bitso, one of the most popular cryptocurrency exchanges in Mexico uses the liquidity to conduct XRP/MXN transactions. ON January 29, the XRP/MXN liquidity index had broken its all-time high after climbing by 15 percent. It broke the previous record of 12.23 million to settle at its new ATH of 14.109 million.
Through these region-wise partnerships, Ripple aims to connect financial institutions with each other seamlessly. Ripple’s flatest blog also touched on how many institutional players were venturing into the digital assets field. This includes companies like TD Ameritrade, JP Morgan and Fidelity.
A major reason for this jump has been the ever-increasing growth potential of the digital asset borrowing and lending market. At present, the lending market is worth $5 billion with a projected multiplier of 5x. On the other spectrum, fiat currencies have been having trouble keeping up with customer demands. In the United States, the Federal Reserve had been blasted for printing notes at an absurd rate resulting in fears of inflation.
The Brad Garlinghouse led company has also set its eyes on growing its native cryptocurrency, XRP. Although XRP may not be having the best of times, Ripple was confident that the value will go up with the increase in volume.