Ripple (XRP) has been hogging the limelight for an extended period. Many consider it as the default option when it comes to remittances using blockchain. However, there have been many cryptocurrencies which have shown a significant promise and after that withered away the mandate or the popularity. Is Ripple (XRP) on the verge of the same? Will it be able to survive and thrive? We look into the various factors in this article.
Is Ripple invincible?
What are the challenges for ripple (XRP)?
It is not like there are no challengers to Ripple (XRP). One of the challengers is stellar lumens (XLM). The only bit of problem is that Ripple (XRP) is far ahead of stellar lumens (XLM) when it comes to cross-border remittances. However, Stellar lumens (XLM) recently got a shot in the arm when IBM confirmed that it would use the Stellar lumens blockchain to provide remittances solutions to the banks which it is working with.
It is one of the main threats which ripple (XRP) is facing. While in the current form, the danger might be small, but if Ripple underestimates the threat, it can soon prove to be too costly for them.
Lack of demand for the XRP token:
To gain the market share Ripple (XRP) allowed the banks and financial institutions to use Fiat currency over the blockchain. However, one of the side effects of the same is that the demand for the XRP token did not increase. Since XRP token is not mandatory for RippleNet products, the volumes have not increased by the same amount. Due to this reason, XRP has not appreciated. It is another challenge which is facing ripple.
While Ripple (XRP) might not be invincible but it certainly has a few challenges which it needs to overcome. Only when it can overcome these challenges can it thrive.