All through the 2018 bear run, most of the focus has been on end of the year prices. For XRP (XRP), predictions of $589 by EOY are constantly thrown around. The danger with such high predictions is that if they don’t come to fruition, a lot of people will be disappointed, and many will quit. For context purposes, imagine a situation where XRP closes the year at under $1. It’s a possibility.
Markets can and have in the past proven to be irrational. In such a scenario, would most investors hold on to their XRP? Chances are that most people invested on the basis of the $589 hype would exit the market. That’s because there would be nothing more to hype them into holding this coin. XRapid is live, and institutions are already going live with it. These are the main areas of focus when it comes to the XRP EOY price predictions, and if prices remain under a dollar, it would be a low blow for anyone invested with expectations of massive wealth by December 2018.
This is the main reason many will miss out on XRP gains when they come, since they will quite the market long before the bull markets start. At some point XRP will make substantial gains in value. It has the fundamentals to back it up, if the uptake of XRapid is anything to go by. So far 3 institutions are live with XRapid and according to ripple, at least one bank will go live with XRapid this year.
Considering that XRapid can give banks savings of up to 70% savings in cross-border transactions, there is an incentive for them to adopt it. However, this will not happen overnight. Several factors will play a role in the possibility of a staggered and slow adoption of XRapid by banking institutions, contrary to the expectations of many.
There is a regulatory cloud hanging over the status of XRP. The U.S SEC is yet to come clear on whether XRP is a security or not. This may hold back many banks from going live with XRapid at the moment. However, once the U.S provides clarity on the status of XRP (XRP), it will see a massive uptake in the banking industry. It makes business sense for them to adopt it. The idea of saving 70% or more is something that no bank can pass on, especially now that SWIFT seems to be a few steps away from implementing DLTs.
Banking industry bureaucracies
Banks have layers of bureaucracies. They also have existing partnerships with SWIFT, partnerships that have run for decades. As such, the process of shifting to XRapid might take a while.
However, even with the above factors at play, ripple has a future in the banking industry. The moment regulations fall in place and banks start integrating XRapid into their systems, the price will start gaining. It may not be a sudden rise, but a slow rise to the top. Such a price rise is more sustainable than a sudden spike that would most likely be followed by a dump as people scramble to take profits.