Ripple (XRP) is a cryptocurrency that has been making headlines over the past year. In the short time since January 2017, the value of an XRP token has increased exponentially. It went from trading at $0.0066 in January to now being worth $2.41 — an increase of 3,172%. This drastic rise in value has many people wondering what will happen to the price of Ripple in 2020 and beyond.
Since its inception in 2012, the number of XRP tokens that exist has been slowly increasing. The supply of XRP is fixed at 100 billion, and right now around 38.6 billion XRP tokens are in circulation. The remaining 61.4 billion are either held by Ripple or have been destroyed as a part of the company’s sale — with no plans to sell any more of its stash anytime soon.
While there is no way to predict with certainty what will happen to the price of cryptocurrencies in 2020 and beyond, there are ways we can make predictions about the long-term outlook for the most prominent cryptocurrencies on today’s market — including XRP.
What is Ripple?
Let’s start by saying that Ripple is not a competitor to Bitcoin — it is, however, a major industry player. With many of the world’s most recognized banks and financial institutions adopting its innovative technology, it’s possible that the future will see an increased number of banks and international payments making use of XRP.
Ripple was created to make international transactions faster, cheaper and more effective than they are now. In this way, it aims to be the PayPal or Visa of international transactions — with the banking system handling settling transactions and sending payment confirmations on behalf of its users.
Strong partnerships, a massive market and applications
A major benefit of Ripple’s approach is its focus on practical applications. For example, in addition to being used by banks, international payments are also fast becoming a big business for fintech companies. Ripple has made significant progress in the banking sector since it was released — with major customers including American Express and UBS. The company also has a number of high-profile customers using its technology for cross-border payments — including Uber and Moneygram. This shows that it has the ability to make an impact in the real world.
Ripple is also far from failing. The company signed a deal in early 2016 to become the exclusive provider of Ripple Solutions for global payments for Accenture’s instant payments and international money transfers. The move demonstrates the level of confidence Accenture has in Ripple’s technology — which hints at the amount of banks that will adopt the technology in coming years.
A market with high demand and low supply
The price of XRP is not simply based on speculation or general market sentiment, it also takes into account the number of people who want to buy and sell this cryptocurrency. At present, there are only around 38.6 billion XRP tokens in existence — by comparison, there are over 1 billion Bitcoins in circulation. As a result, there is a limited amount of XRP.
The demand for Ripple’s XRP tokens is increasing with each passing day, thanks in large part to the trust that major banks and financial institutions have placed in its technology. The arrival of Ripple’s xRapid solution — which is designed to help banks and other financial services send money in seconds — will only see demand increase further.
What will happen next?
Whether XRP is the next big crypto or not will ultimately depend on how well Ripple manages to develop its business from here on out. The value of XRP is increasing with each passing day, however, it’s impossible to say for certain when or even if it will reach the kind of dizzying heights that have seen it grow from $0.0066 to $2.41 in only 12 months.
The price of XRP has increased dramatically in the short time since January 2017, and will likely continue to increase and maintain its position as a top performing cryptocurrency. Over the course of 2018 and beyond, keep an eye on Ripple’s stock price — especially if you are worried about any news that could affect its prospects in the near future.
