Ripple's crypto XRP is no stranger to the volatility of the crypto market, but it's no surprise.
After a recent rally, the price of XRP dropped a couple of days ago, losing more than $ 2 billion in market capitalization, according to CoinMarketCap.
But now, after the announcement of Coinbase that plans to add new digital assets to its listing, the price of XRP has grown by 17%.
"Our goal is to quickly list all the resources that meet our standards and comply with local law, providing our customers with the tools to discover, evaluate, exchange and use digital resources," announces Coinbase and you can read all the details here .
As you can see, the price of XRP fluctuates and many cryptocurrency fans have wondered how xRapid, the XRP-based Ripple product, can survive in such a market.
Market volatility and xRapid
Chris Larsen, co-founder of Ripple, explains how the company created xRapid to provide financial institutions with a regulatory way to use the liquidity and speed of XRP for cross-border payments.
It seems that the actual amount of time XRP is involved in the process of an xRapid transaction is so short that the whole issue of volatility becomes irrelevant.
Ripple's product leader tackles volatility
Ripple's product head, Asheesh Birla, says the process will result in a transaction with lower costs and volatility than fiat.
"We asked our customers – and using xRapid, the volatility that our end customers are using, xRapid customers use, are just a few seconds, so we asked them:" A few seconds of XRP volatility – how do you feel about it? "
Birla continues and explains that between the volatility of a few seconds of XRP and the volatility of a week in possession of a currency there is a huge difference.
Although real-world success and the huge impact of xRapid remains to be seen, Ripple and partners have tested the product in various cross-border pilot tests around the world, and the results have been more than satisfactory.
xRapid could be published in October.