The Ripple (XRP) coin has seen tremendous growth over the past few years, with a whopping rise in its price. Ripple's blockchain technology and its security protocol based on consensus are attracting more and more investors on board.
Over the past few months, Ripple has been one of the top-performing coins in the crypto world in terms of price. Investors are curious to know whether this cryptocurrency will make its way to $1 by the end of 2021 since it’s already up 87% since the beginning of the year.
What Makes Ripple A Unique Cryptocurrency?
Ripple Labs created Ripple with the intention to be a more scalable, speedy, and less costly cryptocurrency. It aims to take out interbank transfer's high costs and is thus popularly known as the 'king of banking infrastructure.' What makes Ripple unique is that, unlike other cryptos, the Ripple project is not meant to completely oppose the current traditional financial systems like banks and governments. Instead, Ripple aims to integrate with the current system to make it more advanced and accessible for its users.
Ripple has a unique consensus mechanism; it improves the overall integrity by validating the account balances and transactions. This will eventually block malicious entries and make transactions highly secure. Ripple has a much lesser cost than other cryptos in the market, making it a feasible option for investors.
Read More: What is Ripple? A Beginner’s Guide
The Ripple Network: XRP And XRPL
Popularly, Ripple is just a cross-chain value transfer platform developed by Ripple Labs for its initial users.
There is a transparent ledger known as the XRP Ledger (XRPL) behind the digital platform. XRPL is an open-sourced, decentralized, cryptographic ledger that is not based on any blockchain, rather powered by a community without a central authority. It is a peer-to-peer network that is accessible to everyone. XRP is the native currency of the Ripple ledger, and this digital asset transmits value across borders instantly with less cost.
There are three major products in the Ripple Network. xCurrent, which allows money transfer easy for banks. XRapid utilizes XRP as an asset that helps businesses and financial institutions in their transactions. xVia, by using advanced blockchain technology, helps companies that are moving money in accessing the information in banks.
Amongst these three products, the focus is given to the On-Demand Liquidity (ODL) solution, a tool built on top of the xCurrent messaging system. It is a major part of the RippleNet suite that enables cheap and instant fund transfer for financial service providers across jurisdictions using XRP coin.
ODL also reduces the risk of currency price fluctuations. This is one of Ripple's major value propositions. With its underlying technology that can help financial institutions, more and more banks will adopt this cryptocurrency. This will further increase the demand for XRP, and there is a good chance of Ripple hitting high ranges by the end of this year.
Ripple's Current Performance And Future Developments
In addition to RippleNet and its three products enhancing XRP's position in the blockchain network, its use case value will be expanded to smart contracting and DeFi in the coming future by Ripple labs. With a current market cap of around $1,515,735,575,264 and a conveniently low price-per-coin, XRP is making its way to investor's favourite list this year. The circulating supply of XRP coins is 45,404,028,640, and it has a maximum supply of 100,000,000,000 XRP coins.
XRP shows a promising future when its management claims that it has signed almost 300 banking and financial customer partnerships. This list includes some of the biggest guns in the market like Accenture, MoneyGram, BFC Bahrain, etc. Today, several financial institutions facilitate this digital currency as an alternative to the SWIFT network, and this gives XRP a real-world application.
Put it simple, Ripple is a relatively high market cap and being a secured, fast, and cheap payment system, it has a high potential for growth in the foreseeable future.
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Will Ripple Hit $1 by the end of 2021: The Bottom Line
Over the past few years, Ripple has shown tremendous growth and has made significant headlines by helping the banking sector upgrade its underlying structure.
Ripple has made transactions cheaper and faster for average users across the world. With the launch of DeFi in the Ripple open ledger, investments from several great institutions, and its space for better crypto regulation, Ripple has quite a good chance of rallying to $1 by the end of 2021.
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