Despite the fact that it seems contradictory at first, Ripple (XRP) might actually be more attractive now that its price is so low. Let’s see why this may be the case.
About XRP
Ripple is a cryptocurrency that has been relatively stable since the price drop that hit the crypto market at the beginning of the year. Where other cryptos continued to drop more and more over the time, Ripple has mostly been balancing between $0.5 and $1.00.
Currently, its price is at $0.490357, with its market cap being slightly over $19 billion. However, despite the low price, Ripple still firmly holds the third spot on CoinMarketCap’s list of cryptos and is being regularly used on daily basis. In fact, some experts believe that Ripple might be getting even more popular as the time goes by, exactly because its price is so low.
At first, this doesn’t make any sense, but in order to understand this occurrence, we will have to take another look at its nature and popularity.
Ripple inspires trust
Ripple is a crypto that is centralized, which is the first thing that makes it different from most other coins. It is owned by the Ripple company, it cannot be mined, and it is mostly focused on creating better, faster, and more convenient payment systems.
These payment systems even include cross-border payments, which are now possible within seconds, while the traditional payments would usually take entire days to be processed. Because of this, Ripple has become one of the top coins chosen by banks and other financial institutions around the globe.
The fact that it is centralized helps with its stability, and since it has an owner and a face behind it, Ripple is capable of inspiring trust. Thanks to the company that owns it, Ripple has a certain reputation, which is exactly what the banks need in order to trust it. After all, it is much easier to trust a coin when you know who is leading it, what are they planning, and how good they are at what they do.
So, obviously, Ripple has a capable team behind it, and a name that inspires trust. Thanks to its products like xRapid, that have proven to be perfectly functional, banks see potential in this coin, which makes them want to adopt it and use it as an entrance to the crypto world, but under their own conditions.
XRP is becoming more and more attractive
This makes Ripple both necessary and desirable, which is why this coin has a guaranteed bright future ahead of it. Now, considering that we know that XRP will continue to be used despite the low price, the low price comes as an excellent opportunity for investors to get their hands on as many XRP coins as they can.
The crypto market is still young and largely unstable. However, many believe that this is still a good thing since it might help with filtering the existing cryptos. Their numbers have gone into the thousands, and with that many of them, nobody knows which ones have a future and which ones do not. The bad market will get rid of the coins that do not have what it takes to survive, and after this has happened, many believe that the remaining tokens will have their prices skyrocket.
This, of course, also includes Ripple, and so getting the coins while their price is still low makes perfect sense. As long as Ripple is being adopted and trusted by the banks, the coin is not going anywhere. With that in mind, the lower prices are actually making it more and more attractive, which is why the investors are buying XRP wherever they can find it.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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