Ripple Q4 report – Summary / Analysis

The main highlight is the price increase of 887% (quarter-over-quarter). In comparison, ETH gained 147%¹ and LTC, 311%¹.

Big developments:

  • American Express / Santander partnership
  • Connection of Korean banks to the Japan Bank Consortium
  • Activation of escrow

The report acknowledges that neither of the first two developments above are using XRP. This is a major concern for XRP holders who want the coin to be used. It attempts to counteract this claim by arguing that a greater use of xCurrent will lead to a higher adoption of xRapid and XRP. This conversion rate will be of interest to coin holders as it may indicate XRP’s price potential.

Ripple’s effectiveness as a company is contrasted to both the discord within the Bitcoin community over block sizes and “leadership commitments” (Charlie Lee?). While this goes against the more democratic views of most cryptocurrencies, it may be more profitable for coin holders. The comparison between Ripple and Stellar (a more democratic version of ripple) will be interesting to watch.

The average daily volume in Q4 was $807.6m rising to a daily average of $2.7b after December 11th. This compares to Bitcoin which had an estimated USD transaction value range between $3b and $4.3b². The key point to take from this is that XRP competed with Bitcoin’s volume without an increase in fees.

2018 Q1 Aims:

  • “Ensuring XRP’s liquidity eventually becomes more like that of existing foreign exchange markets.”
  • “XRP achieves its goal of becoming the digital standard for internal value transfer.”
  • “To build the market infrastructure for eventual direct usage of XRP by financial institutions.”

The report mentions the January 11th partnership with Moneygram to trial xRapid and XRP. Due to NDA’s, partnerships are rarely disclosed in advance but the report does state that “there are a number of other xRapid deals at various stages of completion in the pipeline.” This is important as it refers to the actual use of the XRP coin.

Full-disclosure: I am a cryptocurrency advocate and own cryptocurrencies including the one mentioned in this article.

The report can be found here: https://ripple.com/insights/q4-2017-xrp-markets-report/

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¹ Figures calculated from the USD pairings on Trading View using the Bitstamp exchange. It may differ slightly from the XRP calculation due to exchange variations.

² Information gathered from: https://blockchain.info/charts/estimated-transaction-volume-usd?daysAverageString=7&timespan=60days [Accessed on 24th January 2018]

 

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