Prediction: XRP (Ripple) will outperform Bitcoin and Ether during the next year

Cross currencies It is some of the most volatile assets that you can invest in. But those who are ready to loosen the ride can try some amazing returns. For example, Bitcoin (BTC -1.74 %)) 2,370 % has risen from the beginning of 2019 to this writing on February 14. ether (Eth -3.00 %))The original symbol of Ethereum Blockchain, rises by 1650 %.

But not every symbol is the winner of the world of encryption. Xrp (Xrp 4.30 %))The cryptocurrency used by LEDGER and Rigplenet increased by only 34 % between 2019 and November last year. He was drowned by second The lawsuit that claims that the distinctive symbol was safe and through other setbacks that prevent wide adoption. However, with a new administration in the White House, investors accumulated in the currency. The range may not end yet.

Even after staging in the past three months, XRP can outperform Bitcoin and Ethereum during the next year. This is the reason.

Increased benefit and confidence with a new stablecoin

New Ripple launched Stablecoin In December he called US dollar ripples (rlusd -01 %)). RLUSD is fully supported by reserves in US dollars and government bonds, and is designed to facilitate the fastest stable currencies instead of using XRP on Professor XRP book.

The introduction of Stablecoin may increase the adoption between the large financial institutions of the Ripplenet, which is used XRP to process transactions as well as the bridge currency for conversion. Ripple sees the ability to use Stablecoin as a way to provide the origins of the distinctive real world, which makes it easy to send goods, securities and the treasury on the chain.

The Ripplenet Payment System has seen strong dependence in recent months, but many banks have been reluctant to adopt the entire system due to organizational concerns and confidence issues. The organizational issues seem to be flowing because the new administration is now, as it replaces SEC’s chairman immediately. The new Stablecoin should provide another reason they can adopt for the fastest and cheaper as well.

Ripple USD has already seen a strong demand. $ 100 million of assets flowed to Stablecoin within two months of launch. However, the vast majority of this is held on the ethereum network. However, strong dependence is optimistic about the XRP code, as it increases the use of the XRP book.

Institutional investors can see major assets

Bitcoin and ethereum Part of the Investment Funds circulating It is available to anyone who wants to carry the cryptocurrency as an investment. For many Institutional investorsIt is the only way to invest in encryption, leaving other symbols like XRP on the margin.

However, ETF XRP (or several) can be released in the near future. Several companies have recently submitted requests for Spot XRP ETFS with SEC, which can open the door to accredit the broad institutional investor for the distinctive symbol. It would provide a flow to order on Fixed equipment currencySend the price higher.

However, institutional investors may be moved to sell some of their current encryption investments as the world faces a state of great economic uncertainty due to the current commercial policies of the US administration. As such, they may turn from more dangerous assets such as investment funds circulating to low -risk assets such as Treasury bondsEspecially given the returns are still relatively high. This shift can be greatly weighted on Bitcoin and Ethereum more than it is in other cryptocurrencies that have not yet received ETF treatment, including XRP.

In other words, the possibility of institutional adoption is all up to XRP, while Eter and Bitcoin have already seen their ETF introductions and are now facing possible negative aspects instead. Besides the increasing benefit of the distinctive symbol, supported by Ripple USD, this may lead to a wider adoption in general for the XRP and Recplent notebook to support the price of XRP.

As is the case, XRP appears to be prepared for the superiority of each of the leading cryptocurrencies during the next year or so. However, this does not mean XRP going to the moon. The entire encryption market is very volatile. XRP still faces some important risks in overcoming organizational challenges and the development of RipPlenet. But with real benefit and limited supply, it is a symbol that has a reasonable path to increase value over time.