Ripple (XRP) price prediction 2020
What’s in store for the price of Ripple this year and beyond?
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The price of Ripple (XRP) grew by over 28,000% in 2017, seeing it secure its position as the world’s third-largest cryptocurrency by market cap. With plans to provide an enterprise-grade blockchain solution for global payments, Ripple has grand ambitions and strong financial backing. However, it also has a few important challenges and obstacles to overcome in order to achieve widespread success.
So, will the price of XRP keep increasing? If not, why?
|Algorithm type||Ripple Protocol Consensus Algorithm (RPCA)|
Ripple price prediction
Cryptocurrencies are infamous for their volatility, but what’s not often realised is that there are several competing factors that can have a positive or negative effect on any coin or token. Before deciding whether to buy Ripple or any other cryptocurrency, you’ll need to carefully assess those factors to determine whether you think Ripple is headed for price growth or a decline.
What could drive Ripple's growth?
What could hold Ripple back?
Where to buy Ripple
The actions of Ripple’s competitors could also lead to rises or falls in the price of XRP, so you’ll need to monitor news and developments from other similar projects. Some of the platforms to keep an eye on include:
- Stellar (XLM). Regularly listed as Ripple’s main competitor, Stellar aims to offer fast, affordable and reliable cross-border payments. Developed by one of Ripple’s co-founders, Jed McCaleb, Stellar has so far focused on different customers to Ripple, focusing on providing an inclusive global payments system rather than targeting major financial institutions. Find out more about how the two projects compare in our comprehensive guide.
- SWIFT. Long seen as a reliable and secure way to send cross-border payments, SWIFT has been serving banks since 1973. It’s come in for some heavy criticism from blockchain advocates, but SWIFT has recently been exploring ways to speed up cross-border payments, including the use of blockchain technology.
- Visa. In November 2017, Visa introduced the pilot phase of its blockchain-based business-to-business payments service, B2B Connect. Developed with blockchain startup Chain, the service is designed to allow direct cross-border payments between institutions.
Beyond 2020: What does the future hold for Ripple?
There are interesting times ahead for this cryptocurrency project. From unconfirmed leaks questioning the functionality of Ripple technology to the Coinbase listing rumours being busted, Ripple has taken a few hits in recent times.
With this in mind, we can expect a focus on rebuilding confidence in its brand and forming partnerships with an increased number of big-name corporates. So far in the history of Ripple, we’ve seen many impressive announcements of the platform partnering with financial institutions that are testing its technology, including Western Union, Saudi Arabia’s central bank, Santander, UniCredit, UBS and a host of others.
What many will be watching with interest throughout 2018 and the years ahead is whether or not those banks will actually adopt Ripple’s technology for public use. If it can deliver speed, low transaction costs and scalability as promised, and beat out the competition to become the payment processor of choice for banks, there’s plenty of potential for growth.
Some announcements of official partnerships have already occurred. Mexican financial services firm Cuallix will use XRP for cross-border payments, while in January 2018 it was announced that MoneyGram would pilot the use of XRP using Ripple’s xRapid service.
On Twitter, Ripple CEO Brad Garlinghouse posted: “...three of the top five money transfer companies worldwide will be implementing Ripple’s XRP token in their payment flow systems in 2018.”
Ripple is an exciting project that certainly has the potential to become a major player in the world of payment processing. It boasts impressive financial backing and a long list of big-name corporate partners, as well as what its CEO has called a US$15 billion war chest to fund future acquisitions and development.
However, whether or not it can achieve widespread adoption by, and work successfully with, the existing banking world remains to be seen. Banks are notoriously conservative and hesitant to adopt new technology, and this could be a significant barrier the project will need to overcome.
The bottom line is that you should always do your own research. Make sure you carefully consider all the factors that affect the price of Ripple before deciding whether or not to buy any XRP.
Image source: Shutterstock
At the time of writing, the author holds IOTA and XLM.
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