The market starts the week in negative territory again. However, even under these conditions, XRP is showing some interesting price action. On top of holding up its value against the USD, it is rallying against Bitcoin (BTC). In the past 3 days, it is up by over 40% against bitcoin (BTC), and from the intra-day price action, it could test new highs in the day. This is an indicator that as bitcoin continues to weaken, investments are flowing into XRP (XRP). There are a number of factors driving up the increased uptake of XRP in the market.
First, last week’s events exposed some weaknesses in bitcoin, especially with regards to its decentralization. The confusion that ensued drove most investors into XRP, which at this point has the most utility in the market. XRP is an efficient crypto for moving money around the globe. That’s because it has low fees, is fast and secure. This makes it practical for the banking industry, as has been the case up to this point, hence why money is flowing into XRP (XRP) as the rest of the market shows signs of weakness.
Another factor that could be contributing to the strengthening of XRP against Bitcoin (BTC) is the teaser by CZ Binance about having XRP as a base currency. Though his tweet came off as a joke, it could be an indicator that Binance could be considering adding XRP as a base currency. This has got the market excited because it has lots of implications for XRP. If Binance were to add XRP as a base currency, it would add a tremendous amount of volume to XRP. That’s because there are lots of people who would use it to make deposits and withdrawals on this exchanges that handle billions of dollars on a daily basis. This would drive up the demand for XRP and as a consequence, push up its value going into 2019 and beyond. Such a move by Binance could also trigger other exchanges such as Coinbase to add XRP as a base currency, in order to maintain a competitive edge in the market.
It is getting clearer that XRP (XRP) could challenge Bitcoin (BTC) for the top spot. All it will take is the coming together of these factors followed by an increased adoption of XRP by banks and the value of XRP could push up through the roof. The market cap gap between XRP and Bitcoin (XRP) is getting narrower by the day. If it continues on this trajectory, retail money will FOMO into XRP and play a massive role in pumping it up even further.
The crypto market could be realigning itself, and XRP could emerge as the new market leader, and if it makes it to the top, then its value will shoot up too, just like being number one has helped bitcoin up to this point. The second wave of crypto growth will be driven by utility, and XRP will be a key driver to it all. The future is looking great for XRP.