Ripple is sending shockwaves around the digital currency market after hitting a pricing plateau following a massive growth spurt.
The cryptocurrency is hovering under the $0.90 mark after doubling in value since the end of March – and seems to have hit a level after weeks of rises and falls.
Experts believe XRP Ripple will become the digital currency of choice for many as the underlying blockchain technology is picked up by financial institutions due to ease of use and security for instantly updating transactions across the peer-to-peer network.
ThinkMarkets chief market analyst Naeem Aslam explained Ripple values will climb alongside Bitcoin.
But while Bitcoin must increase a modest one or 1.5 times to equal the market high of almost $20,000, whereas the return for Ripple reaching the previous high of $3.30 is 5.44.
“As the larger crypto-market gains more confidence and positivity, Ripple’s valuation should grow in tandem with the overall value of the cryptocurrency market,” he said.
One example of this confidence is banking giant Santander launching a foreign exchange service based on Ripple blockchain technology that tracks same-day international money transfers.
Surge quietens crypto cynics
Another crypto currency commentator, Nigel Green, CEO of deVere Group, claims Ripple’s stability may convert many of the remaining ‘crypto cynics’ into digital currency fans.
Earlier this year, Green’s financial services company for expats launched deVere Crypto, a pioneering crypto exchange app.
“After the cryptocurrency market somewhat overheated at the end of 2017 – thanks largely to investors piling in, pushing Bitcoin to an all-time high of more than $19,000 – there was a major, natural price correction in the first quarter of this year of most of the major cryptocurrencies,” he said.
“The cryptocurrency market is once again looking already significantly more bullish than it did in the first three months of the year.”
Next global disruptive technology
Green is also convinced more institutional investors are drifting towards cryptocurrencies.
“This latest upward crypto market trajectory is attributed to institutional and retail investors increasingly appreciating the fundamentals, such as the need and demand for digital currencies in a digitalised, tech-driven age.
“There is now huge awareness that blockchain, the technology that underpins the likes of Bitcoin and Ripple, is likely to be the world’s next major disruptive technology. I believe Ripple can convert the remaining crypto cynics primarily due to Ripple’s emphasis on integrating with banks and other financial institutions.
“By focusing its development strategy in this way, Ripple is likely to help change the perception of crypto, expand its own value, and co-lead the ongoing shift in the way the world uses, manages, accesses, stores and exchanges money.”