Volatile price motion of the XRP Ripple token cryptocurrency over the past two weeks has has seen the token skyrocket. Although XRP has receded somewhat from breathtaking 200% gains it experienced earlier this month, many experts have begun to whisper the two golden words which may herald the beginning of the next crypto renaissance – “Mainstream adoption”.
On a fundamental basis, the value of cryptocurrency can only rise when demand increases massively. With a token such as XRP, which features a current supply of nearly 100 billion tokens, it will take a healthy demand to propel the value of this token back above the $1 mark. However, the developers behind XRP are betting that a service such as xRapid, which allows individuals to quickly and easily send payments via the XRP token, should open the floodgates for a global “rethink” of the viability of cryptocurrency in the wider marketplace.
When news of xRapid emerged, demand for the XRP token skyrocketed, not only due to the hype surrounding the rollout but also because of the support that xRapid has received from major industry players, including Western Union, MoneyGram and others. If this isn’t a sign of increased momentum towards mainstream adoption, it would be hard to visualize what is. When asked about the progress the team at Ripple has made with its rollout of xRapid, the company’s senior vice president of product development, Asheesh Birla said, “I’m really excited to bring the product into the market at a time when there is a lot of skepticism about digital assets and their real use case.”
Birla and his team at Ripple are not alone in their enthusiasm. As a growing number of Bitcoin competitors emerge with seemingly viable product offerings, the threat of a crypto meltdown which was experienced in the opening months of 2018 may be receding. Although it is far too early to assess whether or not xRapid will boost XRP back to the value and popularity it reached earlier this year, the same could be said for virtually all crypto products on the market.
Mainstream adoption is the ultimate litmus test for cryptocurrencies. If it can be achieved, there is virtually no limit to how far these currencies can go in terms of value and demand. If it remains an elusive conquest, however, the “bottom” may not yet have been reached with regards to the value of these tokens.
For those still suffering from the shock of the “bursting bubble” earlier this year, some of whom suffered large financial losses, a cautious wait-and-see approach may be advised. Even a currency such as XRP is prone to unexpected price swings due to a number of factors directly related to both the currency itself and the regulatory environment surrounding cryptocurrency at large.