Jun 19, 2018 at 14:16
Oct 1, 2018 at 08:19 UTC
Ripple (XRP) Disconnecting from Bitcoin (BTC)
Ripple (XRP) has over the years signed and closed partnerships with influential financial players. Ripple garners global appreciation for its growth and at the moment has over 100 payment providers and financial institutions on its list of partners. Many other companies have shown interest in adopting Ripple’s various blockchain solutions, thus potentially adding to the list.
What many analysts however point to is the issue of the price value of XRP not reflecting the growth in adoption that Ripple is currently enjoying. The challenge has always been that Bitcoin (BTC) has always been influencing Ripple’s value.
Ripple’s major trading is carried out by Bitcoin. This unfortunately depreciates the price of the XRP, in spite of having great runs of optimistic broadcasts since early this year. This situation prompted Brad Garlinghouse, Ripple CEO and founder. In a recent interview given to CNBC, he stated that: “There is a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies.”
This connection is however going to cease. Exchange listings are gradually changing suggesting a drop in Bitcoin pairings as cryptocurrency exchanges continue leaning towards altcoin-fiat pairings. As more and more exchanges follow into the footsteps of this trend, Bitcoin’s dominance as the preferred cryptocurrency-to-cryptocurrency pairing will suffer a big blow.
Things are already looking problematic for Bitcoin. Bittrex, one of the leading virtual currency exchanges, recently revealed that they are focusing on introducing fiat-cryptocurrency pairings. Bittrex has a wide client base of over three million users globally, with majority of them being from US, who stand to benefit from this development.
News of Ripple disassociating from Bitcoin isn’t recent news. Ripple has been talking about this for a while, but currently, XRP is being encouraged by the activities going on at SBI Holdings. SBI Holdings is currently working to launch its Virtual Currency trading platform, and Ripple is the only cryptocurrency listed on the network’s website.
After the recent TRX/USDT pairing by Binance, bitcoin decoupling from altcoins going to be a frequent phenomenon. Analysts are predicting the decoupling of more and more altcoins from Bitcoin shortly. When this happens, Ripple will be one of the primary beneficiaries.