Despite Ripple’s constant efforts to find more use cases for its XRP cryptocurrency, the company has for quite some time been criticized for being highly centralized by crypto purists who believe its the antithesis of what Satoshi Nakamoto envisioned. Many argue that this association with Ripple has been the reason XRP price has been lagging since booming in January 2018.
However, it seems that these efforts are in fact a boon for XRP’s sensational growth in the near future. This is according to one cryptocurrency enthusiast on Twitter.
Ripple: A Gift To XRP?
According to one DM Logic, there’s no need for XRP investors to keep delving into XRP’s short-term performance because it will ultimately succeed in the long-haul thanks to Ripple.
Even though Ripple CEO Brad Garlinghouse has on multiple occasions distanced the company from the cryptocurrency, the company’s impact on XRP may not be overlooked. He recently told CNBC that:
“It [XRP] exists independently of Ripple the company. If Ripple the company shut down tomorrow, the XRP ecosystem would continue to exist. It’s an independent open source technology.”
But, Ripple continues to develop a suite of products and bankroll projects like Coil that leverage its native token, XRP via the On-Demand Liquidity (ODL). Since its launch in October 2018, the ODL has witnessed tremendous growth and onboarded partners such as MoneyGram, goLance, Santander, and SBI Holdings. Moreover, every time Ripple announces a new development, the price of XRP hikes.
Additionally, although Ripple still owns a large share of XRP tokens, the company has made a conscious effort over the past months to decentralize XRP ownership by releasing millions of tokens from the escrow wallets. Brad Garlinghouse spoke about the dumping allegations that have cropped up due to these monthly escrow unlocks noting that hampering XRP prices is not in the best interest of the company since it holds a considerable amount of the digital asset.
For these reasons, Ripple might be the best thing that ever happened to the XRP ecosystem.
After a rather boring weekend, major cryptocurrencies including bitcoin, ETH and XRP gained momentum on Monday that thrust them above key levels. XRP currently teeters at $0.22 and is up 6 percent on a 24-hour adjusted timeframe, following a consolidation phase that began in mid-December last year. This move has brought XRP’s market capitalization to around $9.72 billion at press time.
At its current price, XRP is up by 15 percent so far this year. Looking ahead, we are likely to hear more news of Ripple partnerships in 2020. Such partnerships should create more demand and value for XRP in the not-too-distant future.