Why Didn't’ XRP Rally After SWELL 2018?
September has proven to be quite a spectacular month for Ripple for a variety of different reasons. For starters, ever since the firm hinted last month that it would soon be launching its xRapid transfer protocol, investors jumped at the business opportunity and put in big money into the firm as well its native financial offering — the XRP token.
If xRapid turns out to be successful, it is highly likely that a long list of established financial players will start making use of XRP to settle their global financial transfers. That thought in itself has been able to increase the value of the currency by more than 100%.
What is xRapid Designed to Do Exactly?
Simply put, the xRapid protocol is designed to serve as an economic bridge between a host of different fiat/crypto assets across the globe. As a result of this, the platform allows banking/financial institutions and payment providers to facilitate cross-border transactions with ease— while charging extremely low fees and delivering near instant settlement times.
Why Didn't Swell 2018 Push XRP’s Value Upwards?
As many of us already know, Ripple’s annual Swell conference just concluded yesterday, with the event boasting of big name attendees such as ex-US president Bill Clinton, Gene Sperling, Ed Metzger. Owing to this star studded lineup of speakers, many analysts were expecting this two day event to spur the price of XRP even higher.
However, now that Swell is officially over, no major rally was observed for XRP during the course of the conference— an occurrence which has left many people scratching their heads. This is even after Ripple Labs announced yesterday that “three US-based financial firms” had signed up for the firm’s xRapid service platform. The three companies include:
- Catalyst Corporate Credit Union,
The first two firms are direct payment providers while Catalyst is a corporative financial company.
Lastly, while XRP has been riding high over the past month or so, it is still worth noting that the asset is 80% down from its peak value which was achieved last year, when the price of a single coin scaled up to a mammoth $3. At press time, the currency is currently trading around the $0.06 mark.
Even though Swell 2018 did not affect the price of XRP in a manner that Ripple’s executives would have hoped for, we need to understand that when we talk about the widespread adoption of a technology such as xRapid, it usually takes some time before the market starts to take notice and warms up to the idea of altering their regular business habits by adopting a platform such as this.