- Ripple Labs is developing a system that can push XRP into the mainstream.
- With massive institutional investment and general market hype, XRP price eyes brighter days.
Prominent XRP community member Nietzbux on X recently called the market’s attention to revelations regarding XRP mass adoption made by a Ripple insider. Austin King, co-founder of the Omni Network, shared details of RippleNet’s functionality and strategy for XRP adoption.
The Efficiency of XRP in Global Finance
In an X post, Austin King, who sold his company to Ripple and then worked there, confirmed XRP’s mass adoption strategy. King shared insights into RippleNet’s design and its goal for cross-border payments. He highlighted RippleNet’s role in addressing inefficiencies associated with traditional cross-border payment systems.
This development underscores the growing institutional trust and strategic alignment with Ripple’s vision for $XRP. Institutional interest could further drive market confidence. $BTC $ETH
— Puppeteer (@GorillaPodcast1) December 3, 2024
In this model, banks must hold huge sums of money in different banks worldwide to enable cross-border transactions. This strategy resulted in costly, complex, and inefficient cross-border payments.
King noted that Ripple’s system eliminates the need for pre-funded accounts by utilizing XRP as a bridge currency. To do this, RippleNet facilitates the purchase of XRP on a local exchange when a bank initiates an international payment. This XRP is then transferred to an exchange in the recipient’s country and sold for local fiat cash.
However, critics have often expressed concern over XRP’s volatility. King explained that settlement in XRP takes only a few seconds, compared to traditional fiat transfers, which take days to settle. He noted that the short time window for XRP transfers reduces exposure to volatility.
According to a CNF report, Ripple offers real-time transaction tracking and nearly instantaneous payment settlement, even on weekends and holidays. This smooth process boosts reliability and allows clients to operate confidently, no longer restrained by traditional banking hours.
King pointed out that RippleNet’s design principles extend beyond payments to broader applications, such as blockchain interoperability. He said Ripple bought his company because of his interpreter network to bridge blockchains.
Institutional Confidence in XRP
In addition to King’s explanation, speculations recently surfaced that institutional investors are buying more XRP.
Nietzbux shared that an insider revealed that institutions are leading the XRP accumulation spree in the current market cycle. This dispels claims that XRP lacked institutional support and reaffirms its promise as a tool for extensive financial applications.
This development demonstrates increased institutional trust and strategic alignment with Ripple’s vision for XRP. Institutional interest could further drive adoption for the XRP coin, thus increasing its value.
As CNF mentioned, XRP recently breached the $2 milestone. This marked a huge achievement for the coin as this is the first time it has reached this level in seven years. As of this writing, XRP’s market cap now stands at $136.5 billion, securing its position as the third-largest cryptocurrency.
Although XRP’s price has declined by 9.5% in the last 24 hours, it is still up 64.8% on the weekly chart. The price moved to as high as $2.6 on Wednesday before dropping to the current $2.40 mark.
