Due to the growing popularity of decentralized finance (DeFi), Ripple may continue to develop its network targeting this option.
XRP had been for a long time the third-largest cryptocurrency after BTC and ETH. However, XRP has lost ground over the past year, mainly due to a lawsuit from the Securities and Exchange Commission (SEC). Other cryptocurrencies have displaced XRP, and smart contract platforms like Binance Smart Chain with Binance Coin (BNB), Cardano (ADA), and Solana (SOL) are in the lead.
XRP, powered by the XRP Ledger platform, is popular for its On-Demand Liquidity product. According to Ripple’s Q3 2021 report, ODL has become even more popular over the last year. The report says:
– ODL had its best year yet – and we’re not even into November. Since Q3 of 2020, transactions over RippleNet have doubled, and ODL transactions account for 25% of total dollar volume across the network in Q3.
However, at the present stage of the crypto-industry development, there are no longer enough opportunities to quickly and cheaply transfer funds around the world. Despite a large number of partnership agreements, Ripple can no longer claim leadership. But that can change if the company also manages to provide its partners with decentralized finance. And these are very attractive opportunities: lending on favorable terms with minimal formalities; placing funds at high-interest rates – this is given by DeFi.
To get these opportunities, Ripple is ready to partner with the Flare tech firm. Flare says it is ready to bring smart contract capabilities to any decentralized network and blockchain. According to Hugo Philion, Flare’s co-founder and CEO, this technology could be of great use for Ripple (XRP), Dogecoin (DOGE), Bitcoin (BTC), Algorand (ALGO), and Stellar Lumens (XLM).
Flare also announced a partnership with AllianceBlock, which offers interchain connectivity and automatic transaction verification for regulatory compliance. If Ripple partners with Flare and AllianceBlock, it will give a strong boost to its XRP cryptocurrency growth.
XRP has already risen more than 20% over the week. For a long time, the strong support level for XRP was the price of $1.0, and the resistance level was $1.24. If the upward momentum continues, after the breakout of this resistance level, the rally could continue till the ATH update which is $3.84. It was set almost 4 years ago.