Ripple’s software solutions are popular with both small and large companies, but interest is particularly strong among institutional investors. Ripple’s market report on the current situation during the last quarter shows great progress in the adoption of Ripple’s technologies.
According to the report, Ripple more than doubled its XRP sales compared to the second quarter, selling $163.33 million in digital assets instead of $73.53 million (second quarter sales). Most of the increased sales came from sales to institutional investors. In the fourth quarter, Ripple sold $98.06 million to institutions, compared to $16.87 million in the second quarter.
In comparison, the total market capitalization of all crypto currencies fell by more than 12 percent, with XRP also affected by the decline. XRP’s price fell by 13.37 percent in the last 30 days to a current price of $0.46 USD.
Brad Garlinghouse, CEO of Ripple, pointed out in an August interview that he expects a new record rate among instituional investments that XRP will utilize:
“Q3 will definitely be a growing institutional participation in the purchase, interest and holding of XRP.”
XRP volatility was rather weak during the complete quarter, but increased over the last two weeks as the price of XRP rose significantly.
Source: https://ripple.com/insights/q3-2018-xrp-markets-report/ In Q4 of the year
In the fourth quarter of 2017, Ripple frozen 55 billion XRP in a cryptographically secured escrow account to ensure network liquidity at all times. In the third quarter of 2018, a total of 3 billion XRP were released from the escrow account, one billion per month.
Nigel Green, CEO of deVere Group, recently expressed his forecast about how high could Ripple get. He reckons that XRP could surge to $1 by the end of this year. Additionally, he also claims that Ripple could double that price in 2019, while also adding that the world will shift from traditional money in the nearest future, and Ripple will spearhead this process.
Large institutional investors continue to be strongly interested in crypto currencies. Many industry heavyweights such as Goldman Sachs and Nomura Holdings announced that they are working on technical custody solutions to securely hold large amounts of capital that are also fully covered by insurance. Coinbase received permission from the Department of Financial Services in New York to offer custody services for a range of crypto currencies through a subsidiary.
Although the current prices of the third quarter show a sideways or slightly downward trend, many developments in the area of adoption and regulation point to a positive future price development.
According to some reports in the Abacus Journal, all problems related to the approval of the Bitcoin VanEck ETF have allegedly been resolved. If an ETF is approved promptly, this could make it much easier for investors to enter the crypto market and new capital could flow into the crypto market. Whether this will actually happen remains to be seen.