- Direct competition from big players putting Ripple in a “less-advantaged position”
- XRP lacks institutional interest and that’s not good for the price
- XRP is back below $0.30, in the green by 0.75% the third largest cryptocurrency is trading at $0.295.
Unfortunately, XRP price is moving in a completely different direction than the growth and progress Ripple is seeing.
Despite Ripple gaining a partnership with one of the world’s top money transfer companies, MoneyGram and Ripple CEO Brad Garlingouse talking about “multiple” investment and acquisitions in the works, the price continues to lose.
Hammering this support once again. The more times it touches, the weaker it becomes… and it has touched quite a few times. pic.twitter.com/tFMgcn5k2T
— The Wolf Of All Streets (@scottmelker) August 9, 2019
Could it be because the old world has started to catch up fast while tech giants like Facebook are eager to get into the field?
According to “Why Is XRP Underperforming?” report by cryptocurrency exchange OKEx, this is exactly the reason and more.
“As a payment solution provider, Ripple is facing intense competition,” and “any negative impact on the company could easily transform into undesirable price actions in XRP.”
Direct Competition From Big Players Putting Ripple In A “Less-Advantaged Position”
What makes Ripple stand out from the crowd, the report says is that institutional money transfer is built into its core.
But this thing could also bring uncertainty for the company because a lot of big players want to tap into this “lucrative” market that is potentially “threatening” Ripple’s business, with US Federal Reserve being the latest one.
The Fed recently announced its plan to develop a faster payment system for banks to exchange money that will allow the transfer of bill payments, paycheck among other business transfers instantly and round-the-clock.
While Dilip Rao, Global Head of Infrastructure Innovation at Ripple’s tweet over Fed’s announcement “seems positive,” the report says the news has made some afraid that direct competition from big players could put Ripple in a “less-advantaged position.”
Now, Facebook’s Libra and JP Morgan’s JPM Coins — built and designed for faster money transfer — could have a negative effect on Ripple’s market share that could spill over to XRP as well.
XRP Lacks Institutional Interest And That’s Not Good For The Price
Although Ripple has already more than 100 financial institutions working with it, the majority of them don’t use XRP as a medium.
“This means institutional adoption of XRP remains relatively low, and that won’t produce any help XRP in terms of having positive price actions.”
“Lacking institutional interest,” is one important challenge OKEx’s latest report says XRP must tackle.
With its “relatively centralized characteristics”, XRP is surely “not everyone’s cup of tea”, but it needs to be seen “if Ripple can further utilize the use of XRP in its payment and transaction solution services in the future and stir institutional interest.”