The Ripple (XRP) price is one of the top performers in the last month. Adding 110 percent in the last trading month, the third most valuable asset is changing hands at $0.54, two weeks after rallying to $0.80.
Behind this uptick is what Ripple stands for and what the investment community expects from the platform.
For starters, Ripple is a cross-chain value transfer platform developed by Ripple Labs. Behind the platform is a transparent ledger, the XRPL. It is here that the XRP, the native currency of the Ripple ledger, is used to transmit value across borders cheaply and instantaneously.
Ripple has three main products. Of the three, the focus is on the On-Demand Liquidity (ODL) solution. It is part of the RippleNet, a suite that financial institutions can connect to. Thereon, they can select to use ODL and XRP as an on-demand liquidity tool forming one of Ripple’s main value propositions.
From next year, Asheesh Birla, the General Manager of Ripple, said it would aggressively market the ODL solution. The more banks adopt, the more there will be demand for XRP forcing a re-pricing higher.
However, beyond the RippleNet, Ripple—an independent company from Ripple Labs, is looking to expand XRP’s use case beyond value transfer to smart contracting and DeFi.
Traders are watching events on Dec 12. On this date, there will be a snapshot of XRP wallets. Depending on the amount held, an equivalent amount of SPARK tokens will be airdropped. In total, 45 billion SPARK tokens will be distributed to XRP holders. These tokens are core to the Flare Network that introduces DeFi in XRPL.
Coupled with Birla’s comments, advocacy of Ripple for better crypto regulations, and the launch of DeFi in the Ripple open ledger, there is a chance the Ripple price will rally to $1 by the end of 2020.
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