Prudence of investment attributes of XRP to prevent barking up at the wrong tree

At all walks of our lives in the investment world, it is wise to empathize the right driving force of an asset class rather than blaming other assets.

With Ripple (XRP) has now surpassed Ethereum in the market cap race to feature 2ndrank in the crypto-space (Mkt.cap of Ripple – $13.46 bln, Ethereum - $12.78), as the buying sentiments are mounting higher but the understanding of the variances between the Ripple as an organization and the XRP as a token still appears to be deficient. So, it is wise to empathize the driving forces of XRP or the fundamentals of the same.

The popularity of Ripple has grown majorly based on a reputation of “banks' cryptocurrency”. Nevertheless, a great deal of clarity as to what exactly the Ripple ecosystem entails, about the mechanism of its payment solutions and in turn, how it drives the value of XRP, is lacking among the investors' community.

Well, in this write-up, we run you through some intricacies of the Ripple ecosystem and where exactly the investment in XRP flows through.

Please be noted that the 'Ripple' is a private company meant for the generation, development, and deployment of assets and services such as XRP and RippleNet, which is incorporated in Delaware as Ripple Labs Inc. The crypto unit is also functioning in California as a "Foreign Corporation”. Retail investors cannot invest in Ripple Labs Inc.

The XRP has a maximum cap of 100 billion units. On the flip side, the criticism of the project is that the Ripple company holding the majority (around 52 billion) in escrow, and in all about 64 billion XRP are not in circulation. Having mentioned that, this indicates that only over 36 percent of this cryptocurrency is actually in circulation among its users,.

While RippleNet is a set of tools developed by Ripple so as to improve the global value transfer systems especially as it pertains to financial institutions. RippleNet is comprised of three payment solutions: xRapid, xCurrent, and xVia. 

In reference to RippleNet, the company has explained: "As a global payments network, RippleNet creates a modern payments experience operating on standardized rules and processes for real-time settlement, more affordable costs, and end-to-end transaction visibility. It allows banks to better compete with FinTechs that are siphoning off customers disappointed by traditional transaction banking services."

The RippleNet deployment has managed to strike a chord in boosting XRP’s buying sentiments convincingly among the reputed crypto asset classes because the participation of the retail investors is not allowed (as stated above). Naturally, the demand has begun for this crypto to prop up XRP’s market cap to the 2ndrank). Hence, it is quite significant for cryptocurrency investors to be aware of the fact that XRP is only actively used by one of RippleNet's payment solutions and that is not the one that is seeing the most commercial purposes. Currently, XRPUSD is trading at $0.33018 levels. Courtesy: BNC

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -33 levels (which is bearish), while hourly USD spot index was at 69 (bullish) while articulating (at 08:28 GMT). 

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