Top 4 Reasons XRP’s Price may Skyrocket in 2018
As the the ball dropped in Time’s Square in a frigid New York City last night, I reflected on what are some of the events/pressures/keys to XRP increasing in value in 2018. In no particular order, here are my top 7 reasons 2018 will be a breakout year for XRP.
- The Q4 2017 Ripple Markets Report to be released by end of January
Per the Q3 217 Ripple Markets Report, we can confirmation of the great results we’ve seen in Q4 and and Ripple’s expectations for Q1. Below is the company’s impression of Q4 2017 from the Q3 report:
In Q3, two of our most important objectives were to bolster our XRP lending and help grow over the counter (OTC) XRP markets. Our work in OTC markets was quite successful. We were able to diversify our pipeline of OTC buyers and establish relationships with most of the key OTC market makers in the space. We’ll look to leverage this momentum as we continue to help build out OTC liquidity in Q4.
Unfortunately, our efforts around lending were more challenged. In the world of digital assets, the devil is in the details, and it turns out there are several considerations to account for when lending XRP. As a result, that initiative is taking a little longer than expected, but we expect to have it up and running in the middle of Q4.
During the fourth quarter, we’ll also continue to expand our xRapid partnerships. Our long-term goal is, and has always been, usage of XRP as a liquidity solution for more and more corridors, and partnerships are key to achieving this goal. Our Cuallix announcement was a clear indication of significant progress, but it’s just the beginning. In the fourth quarter, we’ll announce additional xRapid partnerships, an innovative approach to using XRP to further Ripple Network adoption, and new ways XRP will drive broad development of the digital asset space. Visit Ripple Insights throughout the quarter to read the latest developments as they unfold.
2. Early this year, a Consortium of Japanese banks will commercialize Ripple’s distributed ledger technology after a successful pilot of a cloud-based payments platform called RC Cloud was conducted by 47 consortium members early last year.
According to analysis done by Ripple, looking at retail remittances and corporate payments, distributed ledger technology has the potential to bring down transaction costs by 60 and 50 percent, respectively.
Emi Yoshikawa, Ripple’s director of joint venture partnership, said she expects 10 to 20 more banks to join the consortium this year, which will bring the total number of members to between 50 and 60 — about 40 percent of all Japanese banks.
The Japanese are definitely leading the charge when it comes to FinTech -computer programs and other technology used to support or enable banking and financial services.
Dilip Rao, managing director for Asia Pacific at Ripple, said Japan was very different to the rest of the world when it came to new developments in FinTech like blockchain.
“They have had a lot of interest in bitcoin, blockchain and is more aware of crypto-currencies.”
3. Coinbase listing Ripple on its exchange
Rumors are everywhere that Coinbase will soon support XRP buying, selling, and trading on its platform. The widespread assumption is that if that occurs, a whole new crop of buyers will start investing in XRP.
According to the New York Times, Coinbase is adding around 100,000 new users per day and on December 7, 2017 at the height of Bitcoin’s rise, the Coinbase app surpassed YouTube as the #1 app on the Apple App Store.
Coinbase will dramatically expand the accessibility of XRP to the Public. The assumption is with more visibility and engagement will place upward pressure on pricing with a natural increase in trading volume and money.
4. Use of XRP to facilitate global financial transactions
American Express said its FX International Payments (FXIP) business partnered with Ripple in 2017 to provide real-time, trackable non-card payments from the United States to Britain. One of the first customers, Santander UK will use the blockchain network for direct cross-boarder payments.
Though XRP itself is not being used, Ripple’s blockchain network will help facilitate the near-immediate transfer of funds from Amex’s corporate customers in the U.S. to businesses that bank with Santander UK. The key to 2018 is that Ripple has also said it expects XRP to play more of a role in future partnerships. It is those future partnerships, when announced, that will help boost XRP.
A bonus 5th reason is Ripple overtaking Bitcoin in market capitalization. I’m not convinced this will happen in 2018, so I’m not including it in this list, but the conversation is important to have none-the-less.
Here’s how Investopedia market cap is defined: “Market capitalization is just a fancy name for a straightforward concept: it’s the market value of a company’s outstanding shares.”
There is a lot of discussion on the Interwebs about the utility of measuring a cryptocurrency by market capitalization. Despite the concerns, it is at least arguably true that if Ripple takes the #1 spot from Bitcoin, it will bring attention to XRP and potentially additional interest/investors.
Happy New Year and in our celebratory spirit, let’s hope XPR is truly on a upward trajectory!