XRP (XRP) continues to make gains even as the rest of the market shows signs of weakness. At the time of writing, XRP is the only major crypto that is in the money and is up by over 2%. This points to a scenario where XRP could finally be decoupling from bitcoin (BTC). But while most investors may not have noticed it, the decoupling of XRP from bitcoin (BTC) started a while back. Since news of XRapid going live hit the markets and XRP shot up by over 60%, its trajectory has been quite independent of bitcoin (BTC). The recent bitcoin (BTC) crash just made this declining correlation between the two clearer.
One factor that is giving XRP strength in the market is the fact that financial institutions are adopting XRapid at an increasing rate. This means that the institutional adoption of XRP as a liquidity tool is picking up, hence acting as an anchor to the value of this crypto independent of the price action in the rest of the market. This places XRP in a good place for growth, considering that the adoption of XRP in the market has been growing exponentially. According to Brad Garlinghouse, they expect at least a dozen banks to go live with XRapid in 2019. This indicates that going forward, the demand for XRP will continue to rise, driven by utility.
This utility aspect of XRP is also attracting institutional investors to XRP. This explains why institutions like Coinbase have been moving to add custody services for this crypto. With high retail and institutional interest, XRP’s demand in the market will continue to rise. This is partly the reason why XRP looks relatively unaffected by the recent crypto crash and the reason it has overtaken Ethereum by market cap.
The fact that it has flipped Ethereum and held its position at number two could further hasten the decoupling of XRP from bitcoin (BTC). That’s because it will fuel the hype around XRP and drive up its value even further. If it continues in its current trajectory, and bitcoin doesn’t stabilize, XRP (XRP) will continue to draw more volumes, further setting up this crypto for a more independent trading path relative to bitcoin (BTC).
This is something that should make any XRP investor happy. That’s because when valued without the influence of bitcoin, XRP (XRP) is probably one of the most valuable cryptos in the market. It is taking aim at one of the most important markets in crypto and that’s the cross-border payments market. This market is worth trillions of dollars and ripple has made huge strides in it. It has a clear technological edge over its key competitors including SWIFT, which from its admission, could be a few years away from actualizing this technology. It is the only crypto that has a realistic chance of revolutionizing the world of finance. With its current price action, even the much taunted $589 could become a reality in the foreseeable future. The decoupling process is underway, and it will change the market as we know it.