![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
Cryptocurrency News Articles
The target market for XRP (XRP 4.48%) is the financial industry
Mar 15, 2025 at 06:30 pm
The target market for XRP (XRP 4.48%) is the financial industry. That makes sense, given that the chain's focus is on providing nearly free transactions
The target market for XRP (XRP 4.48%) is the financial industry. That makes sense, given that the chain's focus is on providing nearly free transactions which close roughly as fast as swiping a credit card. But banks and other financial institutions aren't the only organizations that stand to benefit from those capabilities.
In fact, there's another category of potential users of XRP that could demand so much of the coin that its price rises for years on end, potentially surpassing $3, assuming they actually hear about it and decide to use it. So does this possibility make the coin a buy, or is the opportunity too uncertain to confidently invest on?
>People tend to migrate toward sources of economic opportunity. Often, this leads people to cross international borders. Then, once those people have an income, they very often send some of their money to family in their home country in a transfer called a remittance.
In 2023, per the U.S. Federal Reserve, about $818 billion worth of remittances were sent. That sum is expected to grow consistently in the coming years, and it may increase by as much as 2.8% in 2025. Only about half of remittance transfers are thought to be recorded in formal channels, so the true growth rate may be even higher, as well as the true total sum of the transfers.
People sending remittances encounter some troublesome issues with regularity. Between transfer costs and currency exchange fees, international money transfers can in some cases incur fees as much as 20% of the amount being sent. Furthermore, such transfers can take as long as five business days to close, which is a long time for hard-earned cash to be out of pocket from the standpoint of both migrants and their family members awaiting their money.
For reference, as of 2024, remittances transferred out from the U.S. using any fintech service totaled nearly $30 billion. Therefore, there is an opportunity for XRP to capture some of this colossal transfer volume, both from the U.S. to elsewhere, and also between people and their families in other countries. Given that the coin's 24-hour trading volume was less than $6 billion as of the morning of March 13, capturing even a sliver of the daily remittance volume would represent a gargantuan increase in demand for the coin or perhaps for a stablecoin hosted on its chain.
But does this possibility make XRP worth buying on its own?
Despite XRP being very suitable for processing remittances, marketing efforts for that purpose are only just getting started. Ripple (NYSE:RVLX), the company that issues XRP, is forging connections with financial institutions in the Philippines, Mexico, and India, which are all major remittance-recipient countries. But there isn't any data on how much volume those partnerships actually generate for the chain.
Therefore, it is highly probable that the rate of people being onboarded into using it for remittances is still on the low side compared to what is possible. So it wouldn't make sense to buy the coin just to try and capture upside from growth in the volume of global remissions, at least not yet. Nor would it make much sense to invest on the basis of XRP onboarding people who want to make remissions today.
Nonetheless, this is a trend that's worth paying close attention to. If the pace of adoption picks up, as backed by financial information released by Ripple or the launch of major new initiatives, it could well be a driver of higher prices for the coin, and it could make surpassing the $3 mark likely (it recently traded for about $2.35). For now, just keep an eye out for any news on this topic from Ripple; if there's a chance of a big win for the chain over time, you'll hear about it.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Shiba Inu (SHIB) Burn Rate Soars Over 1500% Propelling Significant Investor Optimism
- Mar 17, 2025 at 07:15 pm
- Shiba Inu burn rate once again propelled significant investor optimism by gaining over 1500% on Monday. The latest burn metrics signaled that roughly 13 million coins were ditched from the crypto's circulating supply intraday.
-
- A whiff of excitement floated through the Pi Network community as the highly anticipated surge in token value propelled Pi to a brief high of $1.70.
- Mar 17, 2025 at 07:15 pm
- The crypto rollercoaster perfectly mirrored the hope and disenchantment typical within digital currency circles. Why, one may ask, did Pi’s rise stumble so soon?
-
- BlocScale, the First IDO Launchpad Built on the XRP Ledger, Sees its $BLOC Seed Sale Rapidly Gaining Traction
- Mar 17, 2025 at 07:15 pm
- With over 20% of the allocation sold in record time, early investors are seizing the opportunity to secure a stake in what analysts are calling a game-changer for XRP's fundraising landscape.
-
-
-
- Cardano (ADA) whales are making better choices as they shift a portion of their holdings into Mutuum Finance (MUTM)
- Mar 17, 2025 at 07:10 pm
- Mutuum Finance (MUTM) is lining up to be a leading DeFi performer. Now in round three of its presale, the fast-growing altcoin is priced at $0.02 and has already amassed nearly $3.6 million
-
-
-