financemagnates.com
XRP, the world’s 6th largest cryptocurrency, may not be the best performing digital asset in 2021 in terms of price gains, but its institutional adoption has increased rapidly this year. On the other hand, Solana became the preferred choice of retail investors in 2021 as its significant demand resulted in a record-breaking 10,000% rally.
So, crypto investors made their choice pretty clear in 2021. Solana’s substantial gains and immense demand eclipsed price gains of all the other digital currencies in the top 10. However, is it fair to evaluate the performance of a cryptocurrency just on the basis of a price jump? Perhaps not. XRP’s 350% jump in 2021 may look like a small spike compared to Solana but in terms of useability, XRP gained immense popularity among financial institutions around the world.
Ripple, one of the leading blockchain firms around the world, formed several partnerships this year including collaborations with Bhutan’s Central Bank and the National Bank of Egypt. Earlier this year, Ripple mentioned that the company is testing a private version of the XRP Ledger to facilitate central banks in the issuance of central bank digital currencies (CBDCs). In a recent whitepaper, Ripple termed XRP as a bridge currency for CBDCs.
Solana’s NFT Adventure
Joaquim Matinero Tor, a Blockchain Associate at Roca Junyent, told Finance Magnates that the recent NFT craze is helping Solana gain popularity among retail investors. “Solana is doing great NFT adventures, and this is helping the crypto asset (with almost no gas fees) to skyrocket. Also, Solana (aka “New Ethereum”) is well connected with the Defi ecosystem. On the other hand, XRP still has its “chance” but has been punished for months due to regulatory investigations,” Tor said.
Ripple, SEC, and XRP
In an exclusive discussion with Finance Magnates, Maria Stankevich, Chief Business Development Officer at EXMO UK, said that the uncertainty regarding the SEC’s action against Ripple is a major concern for XRP. “The negative outcome for the XRP price will depend on how tough the sanctions SEC will impose. However, I think that the coin is unlikely to sink below $ 0.6 since currently the negative effect of the SEC lawsuit has already been taken into account in the XRP price. Also, I would like to add that despite the unfavorable situation for Ripple in the US, its business outside America continues to grow and prosper,” Maria said.
“Recently, Ripple has created another ODL-corridor from Japan to the Philippines. Also, the company intends to use the ODL technology to grow its business in Africa and Latin America, providing cheap and fast money transfers,” she added.
Commenting on the recent growth of Solana, Maria said: “As for Solana, it’s probably the most exciting altcoin on today’s market. I’d like to mention one thing that makes it even more appealing – Solana’s decentralized finance protocols are showing rapid growth. Projects Grape, Parrot, and others have collected millions of dollars worth of crypto assets over the past week.”
Adoption of XRP
Johnny McCamley, Founder of CryptoClear, believes that XRP is one of the most important crypto assets for long-term investments.
“XRP is the ideal Crypto Asset to bridge the gaps between the various Central Bank Digital Currencies (CBDC’s). The digital asset industry has finally matured to the point that CBDC’s are now a question of WHEN not IF. As per the Bank for International Settlements (BIS), over 80% of the central banks worldwide are looking at deploying CBDC’s. One clear thing is the importance of interoperability between CBDC’s. This interoperability can be achieved through RippleNet’s On-Demand Liquidity (ODL) service- which allows financial institutions to transact in real-time across multiple global markets using XRP. CBDC’s are a question of WHEN not IF,” McCamley said.
Commenting on the SEC’s lawsuit against Ripple and its potential impact on XRP, the founder of CryptoClear, said: “So, I can only see this lawsuit going one way- outcome determining XRP is NOT a Security. However, I would say that XRP is the No.1 Crypto Asset investment for long-term investors in terms of potential ROI and a better investment opportunity than SOL in terms of potential ROI. All-Time High First for XRP then double figures and therefore providing a greater ROI than SOL.”