Adoption is one of the keys to success in the blockchain and cryptocurrency world, and such is the case for Ripple (XRP) which has been gaining value on the heels of institutional adoption.
XRP’s demonstrated a strong performance during the previous week with the price currently resting at $0.44. This surge is believed to have been fueled by a significant transaction in which a former Goldman Sachs executive called Breanne Madigan received a massive amount of XRP after joining Ripple.
Madigan & Ripple's collaboration
Madigan worked for Blockchain.com before joining the Ripple team. She expressed excitement about her move to Ripple through a statement.
She also stated that she would be in charge of the team of Global Institutional Markets.
She said:
This is an exciting time to be joining the Ripple team, helping to foster mass adoption of digital assets and transforming global payments systems across the world.
Market sentiment
Ripple’s performance these days also aligns with its bullish performance that has prevailed since the start of 2018. The momentum might also be influenced by the optimistic outlook in the cryptocurrency market that has seen most cryptocurrencies on an uptrend, especially the major ones such as Bitcoin. The third largest cryptocurrency is XRP in terms of its market cap.
A look at the macro performance indicates that XRP has surged past its five-month range. It is mostly thanks to its growing trade volumes as it continues to attract more investment from institutional investors, especially in the banking industry. It means that Ripple developers are benefiting from the hard work they put in a while ago.
Ripple's development
Another reason for the recent XRP surge is the recent announcement made by Kava Labs roughly one week ago, revealing that it rolled out a non-custodial XRP and Bitcoin trading service called Switch. Ripple has achieved a lot of success so far, and it intends to take things even higher.
The Ripple development team intends to create a global platform that can be used by banks and other financial institutions. It has already established relationships with the Saudi Arabia Monetary Authority (SAMA) and central banks of numerous countries, including Saudi Arabia.
One of the challenges about the financial industry, especially the banking industry, is that transactions especially cross border ones, are too slow. They often take days before they go through and so they lack the convenience that would be offered by an immediate remittance process. Ripple is one of the organizations that plan to overcome this issue not only by facilitating faster transfer that could be done within minutes, but also cutting down on costs involved. This method of adding value has been one of the reasons behind XRP’s strong performance.
Even the World Bank and the IMF recognized Ripple’s efforts in achieving an easier transfer of funds, thus making notable contributions to the banking system. This recognition by significant banks has further reinforced Ripple’s legitimacy, and this has subsequently contributed to XRP’s positive performance.
