A slew of positive news created a favorable environment for the Ripple’s cryptocurrency in November. The price reacted accordingly to the joy of XRP holders. The XRP price has rocketed in comparison to the 17th November 2017, by +113%. Bitcoin, on the other hand, fell by -29%, Ethereum by -46% and Bitcoin Cash by -64%.
Reasons for the XRP price stability and consistent increase in spite of the bear market are numerous but they all boil down to the competence and experience of the Ripple team.
As a team of finance, technology and fintech veterans, Ripple has demonstrated a clear understanding that an emphasis on partnerships and customer acquisition is an invaluable way for emerging technology companies to thrive.
Ripple is consistently adding new clients. It is not just adding new clients but marquee name clients as well as banks all over the world. Moreover, many financial institutions are also using the Ripple protocol in order to transfer money from one part of the globe to another. This is the reason why Ripple is actually pretty undervalued currently. In the coming future, as it adds newer and newer clients to its structure, the Ripple will most probably be able to increase its market cap and value significantly.
Some of the resulting partnerships with financial institutions are, indeed, formidable:
- American Express
- Banco Bilbao Vizcaya Argentaria (BBVA)
- Canadian Imperial Bank of Commerce (CIBC)
- CBW Bank
- Mitsubishi UFJ Financial Group (MUFG)
- Mizuho Financial Group (MHFG)
- National Australia Bank (NAB)
- National Bank of Abu Dhabi (NBAD)
- Royal Bank of Canada (RBC)
- Shanghai Huarui Bank (SHRB)
- Siam Commercial Bank (SCB)
- Skandinaviska Enskilda Banken AB (SEB)
- UniCredit Group
These partnerships and the overall business success may have caused speculators to keep their faith in XRP, which, in turn, stopped the price from declining further south, and made a solid basis for the recent growth.
Emotional component. We are witnessing FOMO effect (fear of missing out) in full force. Traders are anxious to jump this bandwagon until its too late, adding bullish momentum to the price movement even if there are no new triggers for growth.
XRP utility. Positioned as a multi-pronged solution for major financial institutions (which aren’t going away any time soon), Ripple is actually a useful product to its customers now—regardless of what it will or will not build in the future—and these customers happen to be some of the biggest financial institutions in the world. And it’s speed (4-second transactions) and low fees also make it appealing to general consumers.
From what we saw during the past few days, it can be concluded that minor surges can be caused by some positive flash news, but one such growth as XRP’s can only be a cumulative effect of hard work, successful business practice, high level of trust, and good looking future perspective.
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