Ripple’s Partnerships Are a Positive Sign For XRP Holders, But Is XRP Ledger Really Decentralized?
XRP holders are not particularly happy today since despite the broader market uptrend, the price has remained flat. In fact, Bitcoin broke past $63k and Ethereum past $2.5k, while XRP failed to break the crucial $0.6 resistance in order to continue its uptrend.
In the meantime, YouTube channel with over 100k subscribers “Working Money Channel” posted a viral video today focusing on Ripple and XRP.
What you'll learn 👉
XRP’s Unique Behavior
The market is in the uptrend, with Bitcoin approaching its 200-day Simple Moving Average (SMA). This level is crucial for determining whether the current run has legs. History thought us that breaking above certain price points is essential to avoid market corrections.
Interestingly, XRP has been moving independently of broader market trends. This behavior isn’t unusual for XRP, as it often lags behind Bitcoin and other cryptos during bullish runs.
Despite this, Ripple’s partnerships and use cases should put some smiles on XRP holders’ faces.
Ripple’s Strategic Partnerships and XRP Utility
The partnership between Visa and Ripple through Earthport is likely the biggest one for Ripple recently. Visa is collaborating with DTC Pay to integrate digital payment capabilities. This allows users to convert digital currencies, including XRP, into fiat for payments through Visa’s network. The partnership gives access to over 130 million merchants in more than 200 countries which expands XRP’s potential use case.
DTC Pay is developing a Visa Infinite card that will enable users to convert stablecoins and other digital currencies to fiat in real-time for purchases. This collaboration showcases Ripple’s expanding presence in the global payment ecosystem and hints at the growing utility of XRP.
Another major partnership involves Ripple and Finastra; an automating foreign exchange (FX) workflows. XRP Ledger will play a critical role in these workflows. Especially in FX transactions. This likely goes without saying, but XRP Ledger is more than capable of handling cross-border payments and currency conversions.
The collaboration between Kantox and Finastra further highlights the potential of the XRP Ledger in managing currency transactions. Kantox’s software could potentially leverage the XRPL for secure and error-free trading processes, adding another layer of utility to the XRP ecosystem.
Addressing Concerns About XRP Ledger Centralization
So, these partnerships paint a positive picture for XRP’s future. However, there are some concerns about XRP Ledger. Basically, what’s concerning is that small number of wallets (10 wallets) are responsible for 58% of all XRPL transactions. So there are logical questions about the network’s decentralization.
That being said, it’s important to note that most of these transactions come from Arbitrage Bots and Trustline spam, which is common in financial markets. These bots are believed to provide liquidity and help maintain the XRPL’s efficiency. However, it’s a common thing in many blockchain networks and doesn’t necessarily indicate a lack of decentralization in the broader ecosystem.
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Show more +All in all, the future outlook for XRP and Ripple remains largely positive. Slow XRP price action can’t really affect this.
XRP is still trading in a speculative market due to the lack of regulatory clarity. However, the partnerships Ripple has established, including with major players like Visa and Finastra, indicate that the utility for XRP is being developed for long-term real-world applications. The growing use cases and integration into established financial systems could potentially drive adoption and value in the long term.
Read also: Ripple Whales Go on a Massive Buying Spree – Will XRP Price Explode?
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