Friday 21 September 2018 will remain in the books of history as the only day in which a cryptocurrency has been unleashed. The crypt in question is Ripple's XRP, and people are still wondering what could have caused such a huge rebound in prices for a cryptocurrency that spent the better part of the year struggling to keep the head high. Even more interesting is the fact that the whole thing of the price took place within 24 hours.
XRP is a fairly centralized cryptocurrency created by Ripple, a company that offers payment solutions to financial institutions. Perhaps a look at the developments around Ripple's connection infrastructure, called RippleNet, could offer some insights into what really brought this sudden market event.
For months, Ripple has built bridges and established partnerships with various financial institutions across the world. This fascinating offensive has seen the company collaborate with major banks such as the National Commercial Bank (NCB) of Saudi Arabia, the US PNC, a Japanese financial giant called SBI, among others from various parts of the globe. One of the reasons these institutions want to connect to Ripple is the need for a part of RippleNet, a blockchain solution that connects banks and offers a transfer of funds at a much faster and cheaper rate than the current SWIFT system. .
According to Marcus Treacher, who directs the strategic accounts for Ripple, RippleNet currently dominates a market that includes over 40 countries worldwide and inflows that amount to over $ 2 billion a year. Ripple's payment solutions include InstaRem and RationalFX (which connects UK, Sri Lanka, Vietnam, Malaysia and Bangladesh), FlutterWave and Remitr (which connects Canada and Nigeria), InstaRem and BeeTech (which connects Brazil, Spain, France, Italy and Portugal).
So, What Happened?
This continued expansion of RippleNet, coupled with rumors of a new cryptographic product expected to be released soon, could be the reason for the rebound in XRP prices. Furthermore, the buzz created by those social media entries adds to the effect. The product in question is xRapid, a type of successor to xCurrent.
The xCurrent protocol is the system currently used by Ripple's partner banks for payment solutions. On the other hand, xRapid should be much better because it will actually use the XRP token in payment processing. This alone would increase the network efficiency and the processing speed of RippleNet exponentially – and that's a good thing. Indeed, this development would obviously have a very positive effect on the market value of the token.
However, while things look good for XRP at this time, the cryptography market is generally volatile. It has not yet been clearly defined where exactly XRP is headed. Only time will tell.