2019 was a hard year for Ripple – there’s no denying that. In November 2019, Ripple was down a whopping 28% from the start of the year (according to data from CoinMarketCap), but it’s currently sitting with a market cap of around $10 billion (trailing behind only Bitcoin and Ethereum). Still, things are likely going to look up for Ripple this year. Here are the top 5 reasons Ripple is set to rally in 2020.
5. Ripple and XRP recognized in Bill proposal
Ripple and XRP were recently acknowledged in a Bill proposal, from the Bureau of Consumer Financial Protection in the US, regarding cross-border payments. Partnerships between Ripple and financial institutions have grown over the last few years. Already, Ripple seems to be an excellent choice for banks and other institutions, thanks to its fast and cheap transactions, and the large suite of suitable products.
Read the statement here:
“… the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a proprietary virtual currency, XRP, which can be used to effect settlement of those transfers.”
4. $200M fundraising
Just before the start of 2020, we learned about Ripple’s $200M fundraising initiative. This new capital will be used to accelerate mainstream XRP adoption. In an interview with Fortune, Brad Garlinghouse, Ripple CEO, said that Ripple has more than 300 customers at the moment. However, he predicts that Ripple’s customer base will grow by 30 – 40% in 2020 alone. Garlinghouse also said that he believes transaction volume on the network will go up by more than 600%. The $200M investment, backed by SBI and Route 66 Ventures, will help Ripple climb out of its slump.
3. Ripple is optimistic
Ripple itself is optimistic. In the same interview with Fortune, Garlinghouse claims that Ripple is hiring 150 new employees this year and adding overseas offices. Obviously they’re doing pretty well!
2. Libra is coming to a standstill
Facebook’s Libra project has been cited as the banking industry’s solution to the cryptocurrency problem. However, since its announcement, Libra has been hit with wave after wave of trouble. Regulatory issues have plagued them from the start, and now Libra’s partners are pulling out. This has left financial institutions searching for an alternative, and Ripple is likely the man for the job. With its range of products, Ripple can thoroughly service financial institutions, and it’s already established in a way that Facebook’s Libra is not.
Should this come into fruition, 2020 will be an absolutely bumper year for XRP.
1. Institutional Interest
Number 1 on the list of top 5 reasons Ripple is set to rally in 2020 is increased institutional interest. Brands like State Street and the Bank of New York are set to present storage solutions, encouraging the entry of institutional players into the market. Breanne Madigan, the head of Global Institutional Markets at Ripple, sees this as an advantage for Ripple:
“The presence of recognized players will increase institutional confidence in the space and pave the way for greater institutional adoption next year.”
More institutional investors means more money, and that’s precisely what Ripple needs to keep developing its suite of products. Ripple is poised for mass adoption, it’s really only a matter of time now.
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2020 will be Ripple’s year
The top 5 reasons why Ripple is set to rally in 2020 really boils down to increased interest from institutional investors. As Ripple partners with more companies, trust in their products will grow. Ripple is poised to dive into mass adoption, but they need the partnership of other, more mainstream brands. Ripple could be an enormous asset to various industries, but particularly financial institutions. With so much riding on Ripple’s ability to provide outstanding products, here’s hoping that 2020 will be a bumper year for the company. Ripple has so much to offer, it’s only a matter of time before the world starts to notice what’s actually going on.
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