London-based Luno exchange currently supports only Bitcoin, Ethereum and Bitcoin Cash and will add support for XRP within the next two weeks. Also, based on some predictions, the XRP price could rise to $ 0.30.
The reason Luno decided to support XRP
A simple reason. After conducting a year-long poll on the basis of 3 million users to date, the most popular option is still XRP.
Earlier, Luno had asked their users which currency they wanted to buy the most, except for Bitcoin and Ethereum. Specifically, XRP has topped the list with more than twice the number of votes compared to Bitcoin Cash. In addition to XRP, Litecoin and Stellar also have higher votes than Bitcoin Cash.
XRP is the token that Luno users want to buy the most | Source: Luno
The last 12 months have been difficult months for some XRP traders and investors. The company that makes XRP controls about 60% of it, which is pushing prices down by dumping the market. In October, Ripple revealed it sold $ 66 million of XRP in the third quarter of 2019, down 74% from sky-high sales of $ 251 million in the previous quarter.
XRP prices surged last year when Binance announced it would add the XRP / USDT trading pair in future trading.
In other developments, Ripple's on-demand liquidity (ODL) solution has been adopted by a number of banking organizations around the world, in order to reduce the cumbersome when transferring money across borders. However, many skeptics have raised questions regarding Ripple's partnership with banks. In particular, USDT or stablecoins would be a better addition as they are more liquid than XRP.
Ripple's ODL service can benefit from XRP
Weiss Crypto Ratings said:
Money transfer service #Azimo will use #Ripple'S #ODL service to speed up the fund transfer in Philippines. Why not use #stablecoins instead? #USDT is more liquid coal #XRP. This would have been a novelty in 2015. Now there are better options than XRP for moving fiat around.
– Weiss Crypto Ratings (@WeissCrypto) February 27, 2020
"Azimo money transfer service will use Ripple's ODL service to accelerate money transfer in the Philippines. Why not use stablecoin instead? USDT has higher liquidity than XRP. Choosing XRP will be a new thing in 2015 but there are now better options than XRP for fiat transfer. "
This is not a new question. The XRP community has previously raised to answer such a problem while pointing out misconceptions about ODL and XRP. Galgitron investor is the latest to comment on this topic, saying that stablecoins are the best for XRP.
In a recent blog post, gacheitron stressed that while many people try to impose the idea that XRP is useful in making domestic payments, it is not. Converting his focus to the Ripple service from ODL, he noted that it serves only one purpose – to transfer money across borders.
"Although the creation of stablecoins is still annoying for some members of the community, they are often misunderstood as solving problems related to cross-border payments. It is just a faster version of the basic fiat. "
Although stablecoins can eliminate the need for Country A to have foreign assets in a National bank account, this will result in Country A owning / holding foreign funds and not just one country. country, but also to every nation. This gap forces users to choose dollars, with the use of a digital currency like XRP seem very unlikely.
Gacheitron stressed:
“XRP will never compete in this category or in the corporate corridor, where the market has worked effectively.”
As a stablecoin, or for that matter, CBDC is constituted as a digital version of fiat currency, cross-border payments will lack a currency, although one may choose to use it with CBDC USD instead of ODL.
Galgitron added that it is very likely that in time, ODL may use stablecoins, instead of XRP. Ripple CTO, David Schwartz talked about adding the stablecoin feature to the XRP ledger, but Twitter users said that ODL will not use bridging assets not based on XRP. XRPL will support a stablecoin algorithm that will programmatically allocate enough XRP to pledge currencies.
What all this nonsense adds up is that XRP-backed stablecoins are still useful for XRP demand and appreciation, because that's all about the XRP behind XRPL stablecoins. With this in mind, there may be many stablecoin pairs supported by XRP that can support ODL penetration in corridors that are still considered to be illiquid. Therefore, we can fully expect that when stable currencies supported by XRP are available, financial institutions can hold them.
XRP price could return to $ 0.30
Crypto analyst Michael van de Poppe shared a prediction about XRP price. Michael is considering XRP / USDT and XRP / BTC pairs. The third-valued currency has a chance to return to a high of $ 0.28 – $ 0.30 if it recovers the first level of $ 0.245.
The $ USDT pair is in an support area here.
Reclaiming $ 0.245 and we've got space back towards $ 0.28-0.30.
The $ BTC pair also made a full retrace. pic.twitter.com/qOjLRTLLC3
– Crypto Michaël (@CryptoMichNL) February 28, 2020
"The USDT pair is in the support zone here.
Reclaim $ 0.245 and we get back about $ 0.28-0.30.
The BTC pair has also performed a complete retreat.
At the time of writing, the XRP price is hovering around $ 0.2239, down nearly 1% in the past 24 hours, with trading volumes totaling over $ 10 billion.
Current XRP price. Source: Coinmarketcap
Mr. Teacher
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