Today, the entire market is deep in the red. Bitcoin (BTC) is under $6500, and most altcoins are down by over 15% in intra-day trading. What’s most noticeable is that XRP (XRP), which has been largely stable at the $0.44 to $0.48 level all through the recent market volatility, has now broken below $0.40. So is this the end of XRP?
Well, the answer to that is an emphatic no. The reason why XRP has dropped hard, just like the rest of the market, is due to the shock news that the CBOE ETF had been delayed. In the last few weeks, the market has been so expectant of a bitcoin ETF approval that prices have been on a slow but steady rise, as the decision date drew closer. As such the decision to delay it has been a shocker to the market.
The fear now is that it might not be approved. This has created panic selling that was bound to affect the entire market including XRP. This explains why at this point, only stable coins like USDT are in the green. There has simply been a huge outflow of capital from cryptos as investors try and figure out the way forward.
However, there is a good chance that this won’t last for long. After a few days, the market will have factored in these news, and investors will start taking positions in highly undervalued, but fundamentally strong cryptos. One of the most fundamentally strong coins at the moment is XRP (XRP).
It has a utility value that is unrivalled in crypto. One of its strongest point is the fact that it has the potential to emerge as a base currency on exchanges all across the world. That’s because it allows for fast and cost-effective transactions, which makes it a perfect fit for replacing Bitcoin (BTC). This aspect to it could see the value of XRP rise by a huge margin in coming days.
XRP also has a huge utility in the banking industry. This is probably the most visible utility value of XRP. XRP has cut a name for itself as the perfect crypto for cross-border payments, and is taunted as a replacement for SWIFT. This use-value of XRP has remained steady, and continues to grow over time. Banks all across the world especially in the Far East are already adopting it.
After making in-roads in Japan, and India, XRP could also be making in-roads in China. That’s because SBI has entered into a partnership with Chinese company OneConnect, a company that is heavily involved in insurance, banking, and other financial services. This could mark the beginning of XRP’s entry into the vast Chinese market, further adding to its utility value in banking.
In essence, XRP’s intrinsic value will play a role in attracting buyers once the whole Bitcoin ETF news settles in the market. Already XRP is highly undervalued, and attractive for long-term investors. Therefore, this is probably the best time to buy into XRP.