Ripple XRP will help stabilize the market, being a real sign of stabilization. The digital asset Ripple XRP is currently very popular and continues to actively gain momentum. Many firms implement Ripple XRP for their needs, noting scalability, transaction speed, and so on. A number of experts previously emphasized the advantage and usefulness of Ripple XRP, unlike many other cryptocurrencies. Now Ripple on its official website has submitted material in which it called XRP a utility to stabilize the market.
Ripple XRP helps stabilize the market: Details
Ripple on its official website presented material in which it called the digital asset XRP a utility to stabilize the market. Ripple emphasized that financial institutions are currently leveraging the power of blockchain technology and digital assets to produce tangible results. At the 2020 World Economic Forum in Davos, Finance Minister Steve Mnuchin referred to this progress. He talked about the impact of digital assets, emphasizing that cross-border payment systems have their own advantages in reducing costs for consumers and enterprises, and noted that the United States will support this.
According to Ripple, industry studies show that blockchain adoption became widespread in 2019, when awareness of the added value that digital assets can play in conjunction with blockchain increased, especially for key use cases such as cross-border payments. Moreover, last year, as Ripple emphasized, the trading of derivative digital assets showed a significant increase, which is an important step in the development of these technologies. Taken together, Ripple noted that the increased utility of digital assets in cross-border payments and the introduction of derivatives trading are creating a more liquid and stable digital asset market than ever before, with no signs of slowdown.
Ripple’s global network, RippleNet, is driving the use of the XRP digital asset. Banks and payment providers are joining RippleNet to use cross-border liquidity on demand as an alternative to traditional pre-financing and increased processing efficiency. For example, money transfer giant MoneyGram uses Bitso, the leading Latin American exchange, as its key exchange partner in Mexico, using the RippleNet liquid demand-based service (ODL).
Ripple ODL uses the XRP digital asset as a real-time liquidity bridge between sending and receiving currencies. In addition to freeing up working capital, Ripple ODL offers instant settlement and guarantees the most competitive exchange rates available today. Recently, MoneyGram announced that with the help of the Ripple ODL, it moves more than 10% of payment transactions between the US and Mexico, and this year the business plans to use this service in several corridors.
Thus, RippleNet allows financial institutions to connect with each other, as well as with each other’s extended networks. As these network effects continue to increase, this, according to Ripple, will lead to even more liquid markets and reliable financial products around crypto protection, attracting new participants to the ecosystem. In the digital asset markets, Ripple also emphasized that the construction of financial infrastructure and products has intensified, as well as many more participants, which is very useful. The evolution of financial products has continued.
The biggest role, as Ripple pointed out, in attracting new investors to further stabilize the market, futures / derivatives play. Digital asset derivatives showed clear growth last year. The continued growth of derivatives, Ripple noted, will open access to increased capital efficiency and increase trade volumes throughout 2020 and beyond. In addition, as more and more hedging products become available, traditional investors will see greater opportunities for trading digital assets, reducing risk and increasing trading volumes. New tools, Ripple emphasized, for digital asset trading are also important in this evolution.
In fact, perpetual swaps are today considered the most liquid and traded instruments in digital assets, creating an effective forum for trading. A recent example of this is the world’s leading Binance exchange, which has added Ripple XRP to its Futures trading platform and made it available as an XRP / USDT perpetual contract. In addition, the growth potential of the digital asset borrowing / lending market is significant, and now this market is considered an industry with a turnover of $ 5 billion.
This significant impetus last year, Ripple emphasized, was partly due to low interest rates for many of these currencies, an increase in the number of digital asset market participants in need of working capital, and an increase in long-term holders of digital assets seeking to generate profitability. Summing up, Ripple pointed out that a turning point is coming for the market, and XRP will play an important role there.