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Indeed, according to a reply by one of the enthusiasts, XRP is expected to begin achieving a good price movement sometime in 2022 or 2023. If this scenario is to be considered, then the notion of XRP’s price remaining low for the next year could be valid.
Ripple has long-touted itself as a better replacement to the dated SWIFT system that banks use for cross-border payments. The San-Francisco-based fintech company claims to enable near-instant settlements using its advanced technology which has now been adopted by many banks and payment companies. Apart from the banks, Ripple is also supported by venture capital firms like Andreessen Horowitz, and Google Venture.
In a tweet that will undeniably excite XRP fans, an investor and notable analyst Eric Daduon noted that these investors will secure the internet of value into existence so as to prop up the price of XRP.
Daduon said :
“#Ripple makes money elsewhere but safe bet they want a higher $XRP price given their “bag”. You know who else would? Their investors (Standard Chartered, Santander, Andreessen Horowitz, Accenture, Google, etc). These giants are going to will the #IoV into existence. I can wait.”
The ledger employs the decentralized native cryptocurrency known as XRP, which as of September 2018 was the second largest coin by market capitalization.[3][4]
Ripple relies on a common shared ledger, which is a distributed database storing information about all Ripple accounts. The network is "managed by a network of independent validating servers that constantly compare their transaction records." Servers could belong to anyone, including banks or market makers.[8] Ripple validates accounts and balances instantly for payment transmission and delivers payment notification with very little latency (within a few seconds).[9] Payments are irreversible, and there are no chargebacks.[10]
Source: Wikipedia
https://en.m.wikipedia.org/wiki/Ripple_(payment_protocol)
XRP offers financial institutions the fastest, lowest cost option for sourcing liquidity in cross-border payments.
RippleNet customers can use XRP for sourcing liquidity in cross-border transactions, instead of pre-funding—ensuring instant settlement, lower exchange fees and more efficient use of working capital.
This same technology is also leveraged in use cases for micropayments, e-commerce, exchanges and peer-to-peer services. XRP and the XRP Ledger are open-source technology that anyone can build on. To get started, learn more at XRPL.org.
Blockchain payments firm Ripple has said that “more than two dozen” customers use its On-Demand Liquidity (ODL) solution, which leverages XRP cryptocurrency to settle cross border payments.
Some of these customers include money transfer firms MoneyGram, Viamericas and FlashFX, online workforce platform that connects employers with freelancers goLance, and financial services provider Interbank Peru, among others, Ripple announced Wednesday.
Conclusion
Both Ripple and Stellar make it their goal to improve the ease of completing transactions across borders, particularly those that involve multiple currencies. Ripple is two years older and targets banks when spreading its technology, while Stellar targets the unbanked. Both rank incredibly high in terms of popularity and market value, and their prices are relatively similar. As such, it appears that Ripple and Stellar are different enough to coexist in harmony, and each currently enjoys success. Despite their similarities, those in the crypto community seem to support both currencies, indicating that there does not necessarily have to be a winner.
Bank of America is testing this technology for use.
XRP, the third-biggest cryptocurrency by market value, seeks to succeed where bitcoin and other digital currencies have largely failed: in powering fast and low-cost transactions.
Seven-year-old XRP is one of the most successful examples, thus far, of attempts to build cryptocurrencies capable of entering mainstream finance and commerce.
The currency was designed to help these companies - from payment providers to remittance firms - settle transactions instantly, pay lower fees and free up capital typically tied up in payments using traditional money.
XRP, like Facebook’s proposed Libra, veers away from the ethos of bitcoin, the original cryptocurrency, which aimed to sidestep the financial establishment by dispensing with a central authority.
While bitcoin “miners” compete against each other using powerful computers to solve algorithms and earn new coins, XRP’s entire supply of 100 billion was created at its birth.
Ripple now holds large reserves of XRP in escrow accounts, selling the tokens to large investors to boost liquidity and widen the spread of the technology. That means the company has centralized control over the supply of XRP.
Who is using it?
For the most part, payment and FX firms.
Ripple says around a dozen firms use XRP for liquidity.
One of the most well-known is U.S. remittances firm MoneyGram International (MGI.O), in which Ripple invested $30 million in June.
London-based Mercury FX, which counts small businesses and wealthy individuals as clients, uses XRP to facilitate payments into and out of countries such as Mexico and the Philippines.
Ripple holds XRP in escrow accounts and sells directly to the market to boost liquidity. It said in a July report that XRP markets should resemble traditional foreign exchange markets, which are typically highly liquid and efficient.
“Ripple needs to provide the token, to encourage the spending, the use of that in their system,” said Denis Vinokourov, head of research at BeQuant, a crypto exchange in London.
“It’s a necessary evil. It hurts the price in the short term, but in the long term the usage of it will eventually increase.”