The prospect of Ripple’s bullish trend has been motivating for a while now since the blockchain project started partnering with financial institutions, implementing its cross-border transaction payment system.
Despite the overall bearish trend of the cryptocurrency market, Ripple’s XRP took a sudden surge within the space of two weeks that saw a drastic rise of about 70% value in September.
This surge was driven by Ripple’s network partnership with American giant banking firm, PNC and also the announcement of the plan to launch its xRapid project that would enable banks to use Ripple XRP as a bridge in making cross-border transactions.
Notably, before the pinnacle of these partnerships with financial institutions, it has dominated the Middle East and Indian market with its significant alliances, as it was set to unseat the hold of SWIFT in the real-time settlement.
The prospects created by these partnerships and the xRapid project was capped with its Swell conference that was to host a notable speaker, the former United States President, Bill Clinton among others. This created a massive investment in the cryptocurrency and equally a rise in its value.
The Launch Of xRapid and Its Impact
The launch of xRapid was meant to increase the give some further push to the already bullish trend, beyond the present state as expected by most cryptocurrency enthusiasts. But the contrast has been the case as the XRP has seen a decline of 16% in value after the first week of xRapid’s launch, with more signs of bearish trend still underway.
Also, there has been a retracing of the excitement that propels investors to dabble into Ripple some weeks back. Notably, many factors among others have been noted to have driven the present condition of the XRP’s value.
Why The Fall In Value Of Ripple Despite xRapid System Launch
The value of XRP has risen dramatically recently, not because of the numbers of banks it has partnered with, which can also be considered in some regard. However, the profile and status of its recent partners have been a motivating factor for investors to go all in. Some of them include MercuryFX, Cuallix, and Catalyst Corporate Federal Credit Union.
With all these achievements, Ripplenet xRapid is yet to be adopted and backed by big players, as the project is technically tested in the real world to know if its able to do what it promises, putting away payment systems such as SWIFT for good.
Furthermore, the address of former U.S. President, Bill Clinton at the Ripple’s Swell conference was not convincing enough to project the objective of cryptocurrency as the future of the financial sector.
His address at the event was on the use of cryptocurrency but didn’t say much about cryptocurrency being the future means of transactions. This among others could have led to some investors losing hope in the system.
However, the success of the project will be proven over time and more adoption and partnership with large banking institution expected in coming months make investing in Ripple’s project a worthy cause at the moment the general crypto market is still bearish.