How Decoupling From Bitcoin (BTC) Will Benefit Ripple (XRP)?
Ripple (XRP) has been lauded for its unrelenting quest for adoption, often signing high profile partnerships around the world.
At the moment, the platform has over 100 banks and payment providers on the list of its partners. What’s more, this list is expected to grow even bigger with more adoption of its various blockchain solutions.
The only problem pointed out by many observers has been that the growth in adoption isn’t reflected in the price value of its native currency Ripple (XRP). The problem has been that XRP’s value has always been correlated to that of Bitcoin (BTC).
A larger percentage of all XRP trading is carried out in Bitcoin. What this means is that the value of ripple has kept dropping, in spite of having a great run of positive news since the beginning of 2018.
It’s this scenario that drew a comment from the crypto’s CEO Brad Garlinghouse. He recently remarked that:
“There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies.”
However, this correlation is soon set to change. The gradual change in exchange listings will lead to a drop in BTC pairings. This is because more and more crypto exchanges are increasingly leaning towards altcoin-fiat pairings. In the end, the dominance of BTC as crypto-crypto pairing will drop.
The trend is already underway and things are beginning to look up for cryptocurrencies. For example, one of the leading crypto exchanges, Bittrex, recently announced that they are looking to introduce fiat-crypto pairings.
The crypto exchange has over 3 million users and a sizable number of them from the US who’ll benefit from this development. Other cryptocurrency exchanges like Binance too are taking a similar route. It has also announced that it’d be soon having Ripple/Binance Coin (XRP/BNB) as well as against True USD.
Ripple XRP decoupling from Bitcoin (BTC)
The idea that BTC-altcoin decoupling is around the corner isn’t a recent thing. It has always been felt that Bitcoin had a strong hold on the market and sentiment rose or fell with its own swings.
For Ripple (XRP), the feeling that a decoupling from bitcoin is imminent comes from the activities at SBI Holdings. The company is rolling out its Virtual Currency trading platform and as it stands, XRP is the only crypto noted on the platform’s website.
It’s worth noting that no other cryptocurrencies have been suggested. In terms of what may happen if it stays this way, it’s that Ripple’s XRP has a big opportunity to gain in value without the influence of Bitcoin.
Ripple (XRP) to benefit from crypto decoupling
The expectation is that more and more altcoins will decouple from Bitcoin. When this happens, one of the primary beneficiaries will be Ripple. And it’s easy to see why this will be so: it has the widest use case of any blockchain platform.
Ripple’s decoupling could coincide with a massive adoption of its xRapid solution by banks. According to CEO Garlinghouse, more banks will be using the solution by the end of the year and many more in 2019.
Speaking to CNBC at the Money 20/20 Europe Fintech conference, he said:
“I’ve publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool.”
Even as that happens, Garlinghouse has noted that the crypto market is still growing and there are likely to be many winners. XRP will definitely one of them as more investors gravitate towards it. Ripple is offering the best “bridge” for cross-border payments and financial institutions are seeing the massive advantages the coin offers.
The exponential growth of ripple solutions is setting up XRP for massive price gains in the coming days. It’s such a time when would-be investors should be looking to get into a crypto that is poised to explode in value.
Current predictions put Ripple (XRP) prices within reach of values that would dwarf the crypto boom of 2017. Imagine the coin making it to values that could reach between $5 and $10 by end of 2018. With prices at the current lows, it’s a perfect time to buy and load up on a coin that won’t disappoint.