Ripple (XRP) Supports Bitcoin Growth and Gains 13% Over The Week

Ripple (XRP) Supports Bitcoin Growth and Gains 13% Over The Week

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Bitcoin has continued to rise, as many analysts have predicted early. But few of them expected that the fourth cryptocurrency, XRP, would support the growth. Over the day, it grew by almost 4%, and over the week XRP added 13% to the price. The CEO of Ripple assures that this is not all.

Typically, the rise in bitcoin is accompanied by the rise in the second cryptocurrency, ETH. But now the situation is different. Ethereum is barely growing, its supporters are at a loss. XRP, on the other hand, could renew its annual maximum of $0.3377 that was reached on February 15th. And BTC is setting new records. The forecast appeared that the king of cryptocurrencies will bit its all-time maximum, $20K, before the end of the year. BTC received a new impetus for growth due to lower bond yields and continued issuance of fiat currencies.

According to Bloomberg, the aggregate value of bonds with negative yields is $17.05 trillion, breaking last year’s record. Having lost the opportunity to make money on bonds, investors triggered to bitcoin. In addition, some investors want to make money by offering BTC on loan. This operation can give a higher yield than government bonds, about 6%.

The secret of XRP growth is completely different. More and more countries are considering launching their own state cryptocurrency, the central bank’s digital currency, CBDC. The Ripple cryptocurrency may be the perfect solution for this. The difficulty in launching the CBDC is the lack of liquidity plus there will be a compatibility problem between different currencies. According to Ripple CEO Brad Garlinghouse, XRP is proving to be an ideal intermediate currency for cross-border payments and currency exchange. The top manager emphasizes:

“The whole point of XRP in our context is to be a bridge asset. So if you’re using a US dollar stablecoin, you still need to get to a Brazilian Real stablecoin or Australian stablecoin. The point [of Ripple’s efforts] is to enable a lot of efficiency and liquidity between XRP and the US dollar, and XRP and the Australian dollar. You just have to worry about one bridge as opposed to liquidity between every pair. So just using stablecoins doesn’t really solve the problem that XRP is solving. XRP as an extremely efficient, extremely scalable blockchain, is ideally suitable for that.”

Garlinghouse also boldly added that Ripple offers its cryptocurrency for more than just cross-border payments.

“We will help clients grow and expand their business. This is already being done by On-Demand Liquidity (ODL – Ripple’s product) and Credit Line.”

The CEO of Ripple also stressed that there are many applications of blockchain technology, including for trade finance.