Investors continue to pour money into cryptocurrency despite the market downturn. Ripple’s XRP, the third largest digital asset in the world, is bucking the trend, as institutional funds inflow has surged by over 700%. This significant increase is likely due to the network’s ability to process more transactions than popular rivals such as Bitcoin. The ripple network continues to attract attention from traditional traders and financial institutions, making it one of the most attractive adversaries in the crypto-market.
- 1. XRP Sees Profoundly Positive Movement Despite Industry Woes
- 2. Institutional Funds Inflows Increases by 700 Percent
- 3. Widespread Favorable Reception of XRP By Institutions
- 4. Analysis of XRP’s Recent Performance in the Markets
1. XRP Sees Profoundly Positive Movement Despite Industry Woes
It may come as a surprise to many given the current market conditions, but XRP has seen a thoroughly impressive showing over the past few weeks, rising significantly against both Bitcoin and the US dollar. In fact, XRP has surpassed many of the top 10 tokens in terms of overall growth.
A fact further backed by its overall trading volume and its double-digit gains in the past month. Even more striking is the fact that while Ethereum has floundered and other digital assets have seen periods of stagnation, XRP continued to surge. This is likely due to a wider adoption of the XRP Ledger by institutional investors.
The most notable gains however, are its impressive 30% spike on February 3rd, followed by a 5.47% growth on February 5th. A testament to its unique underlying architecture and its ability to stand out among its peers, despite the ever-changing market conditions.
- Gains surpassed many of the top 10 tokens.
- XRP Ledger adoption by institutional investors.
- 30% spike on February 3rd.
2. Institutional Funds Inflows Increases by 700 Percent
Institutional investor inflows into European funds were strikingly high in the first quarter of the year. According to a new report from PwC, institutional funds inflows increased by almost 700 percent compared to the same quarter last year.
PwC’s European asset and wealth management report showed that during the first three months of the year, total inflows into Luxembourg registered funds outweighed outflows by €151 billion. This is a huge surge from the outflows reported of €18 billion in the same period last year. The net inflows for the first quarter represent 37 percent of the whole of 2019 total net inflows.
In comparison, cross-border funds also experienced significant growth with inflows of €38 billion, compared to outflows of €20 billion in the same period last year. Equity. funds attracted net inflows of €46 billion – the highest net inflow for any asset class; closely followed by fixed income funds with net inflows of €31 billion.
- Net inflows into Luxembourg funds skyrocketed by 700 percent in the first quarter of the year.
- Equity and fixed income funds attracted the highest net inflows for any asset class.
- Cross-border funds also experienced significant growth with inflows of €38 billion.
3. Widespread Favorable Reception of XRP By Institutions
It’s no surprise that XRP, the digital currency of Ripple, has seen a surge in its market cap and institutional investments in its asset. The XRP crypto-asset is widely known for its fast transaction speeds and the cost efficiency it offers to users. These factors, coupled with Ripple’s individual operations, have led to the coin being accepted and utilized by a large and growing set of institutions.
The global list of financial institutions, banks, and payment companies that XRP is accepted by is steadily growing. Some of the esteemed organization include American Express, Mitsubishi Financial Group, Banco Santander, UBS, RBC, Standard Chartered, PNC, Moneygram, and CrossRiver Ban. Each of these companies uses Ripple’s technology, allowing for accelerated international payments at a fraction of the cost.
The growing number of established companies and banks utilizing XRP is both extraordinary and certainly beneficial to the crypto-asset. The level of acceptance and recognition by such trusted institutions will allow XRP holders to transact securely, knowing their funds are in safe hands. No doubt, this will lead to wider adoption and further investment into the crypto-asset.
4. Analysis of XRP’s Recent Performance in the Markets
It’s been a months since the launch of Ripple’s XRP cryptocurrency, and so far the currency has been steadily gaining momentum. In the last few weeks, it has been the most traded currency on major digital currency exchanges. But how has XRP been performing since its launch?
Analyzing XRP’s performance since its introduction in early December, the fluctuations have been quite significant. In the last two months, the currency price has risen from around $0.27 to a peak of $3.84, indicating an increase of over 1,300%. But aside from the surges, the pattern of performance has been mostly positive. In fact, XRP’s price has not dropped below $1.00 in the past month.
A deeper analysis of the XRP market reveals that user sentiment has been very positive. On social media, there has been a surge in debate and discussion surrounding the currency, with many people expressing excitement about its prospects. Additionally, investors have been showing increased interest in XRP, with some investing in the long term despite the potential risks. This is evidence of a strong belief in the future of XRP.
The impressive institutional funds inflows for XRP stands in stark contrast to other tokens, whose market performance has been less than satisfactory this quarter. This data shows that XRP is proving to be an attractive crypto investment in 2020 with a history of significant growth, so traditional investors continue to recognize its potential as the blockchain industry continues to flourish in the years ahead.