Ripple is facing fierce competition, not only in crypto sphere but also from traditional money transfer companies like Swift and Visa.
Ripple is currently offering 3 different systems for money transfer: xCurrent, xVia and xRapid. Only the latter one is actively using XRP token, the other two work completely without it. This of course raised many eyebrows in crypto community since the conclusion of such information was logical: XRP token has no purpose in Ripple ledger. This is, however, not the topic of this article as I want to put more focus on gauging Ripple competition outside of crypto industry.
Swift is established company that dominates mainstream money transfer around the world and it easily overcomes negative news like the partnership between Santander bank and Ripple.
This should be the primary target for Ripple: gaining ground on their non-crypto competition since their main crypto competitors pose no threat to their business model. Top cryptocurrencies like BTC and ETH are not pursuing same goals as Ripple: Bitcoin is leaning more towards being digital gold and store of value while Ethereum wants to be new Internet, platform for all kinds of decentralized applications.
So, how can Ripple Labs spur the price appreciation of XRP tokens?
Well, the answer is simple, Ripple needs to gain more adoption among financial institutions so they can see it as a viable alternative to mainstream solutions like Swift. Additionally, Ripple needs to push their third system xRapid more, since that one uses their XRP token for value transfer. If this happens, the demand for XRP token has no other way to go but up. Just one major bank, like the already mentioned Santander, needs to decide it will use XRP for cheap money transfer – people would break legs to jump in the race for XRP tokens.
Back to a gloomy and a bit depressing reality
At the time of writing, XRP is valued at $0.665, losing 5.30% in comparison to yesterday, however, this is connected to an overall market drop, this week was completely dominated by bears as they butchered all major coins.
In broader picture, Ripple offensive on services like Swift will take some time, but should Ripple Labs start moving in this direction, we can very well expect to see XRP hit $5.00 and potentially beyond that mark. Growth in this sector would also see XRP’s market cap and trading volume shoot up too, something which could provide Ripple with a very prosperous future.