XRP currently sits as one of the top ten cryptocurrencies in the world with a market cap of about $37 billion. The coin was developed by Ripple, little wonder it is sometimes called “Ripple”. However, XRP has the likelihood to grow, following its high-profile financial partnerships. Nonetheless, there are things to consider which in a way could be a hurdle for the coin to cross.
1. XRP Transactions Are Fast And Cheap
Two major competitive advantage of XRP is its speed and low transaction fee. In Ripple, the standard transaction fee is 0.00001 XRP. Also, the average transaction time is 5 seconds. So, using XRP is an efficient way of sending money.
2. It Is Designed For Financial Institutions
Considering the purpose of a coin is very important while investing in cryptocurrency. This is because many cryptos lack the call of purpose in this regard as their operations are no different from tens of coins out there.
In the case of XRP, it is uniquely designed to serve financial institutions and payment services.
With XRP, banks and other financial companies can easily conduct transactions without accounts being pre-funded.
3. XRP Is Trading Below Its All-Time High Since 2018
The year 2021 has witnessed some cryptocurrencies smashing their previous all-time highs, but the narrative is different for XRP. It has its all-time high in January 2018, when it was valued at $3.84.
XRP has experienced its roller coaster in the crypto space to the point that its price was valued at $1.96 in April this year, and has since dropped to $0.80 as of the time of writing this article.
4. XRP Is In Partnership With Over 300 Financial Institutions
A well over 300 financial companies across more than 40 countries in the world have had an agreement to use XRP. Some of these companies are American Express Bank, Bank of America, Xendpay, etc.
Although it still has so much to do in catching up with its biggest competitor, it should be noted that SWIFT has over 11,000 partners compared to the 300 partners of XRP. But, SWIFT has been around since the 1970s, in contrast to Ripple being launched in 2012.
Let’s remind ourselves that there are numerous crypto platforms in the world, but you must assess the ones that have the special features you desire.