As we glide into the new year and take 2021 in our stride, there’s a good chance you’re taking a look over how all of your investments performed last year.
Although not too many of us had a great 2020, there were still a tonne of avenues for growth in the cryptocurrency market and on the stock exchange, however, if you’re like us, you might be wondering whether Ripple or XRP still has an opportunity to grow in 2021 or not.
That in mind, we’ll take a look below at whether Ripple is still a good buy in 2021 and whether you should move forward with adding some extra XRP to your holdings this year.
What is Pushing the Price of Ripple
To kick things off, it’s good to know what’s actually moving the price of Ripple up and down and whether this driving force is going to continue pushing it forward or whether it might let us down in the year ahead.
Of course, with all cryptocurrencies being decentralised, you’re not going to be able to get too much information on who or what is moving it forward, though you can tell by looking at what some of the other currencies are doing.
On top of this, XRP or Ripple is designed differently to some of the other bigger names out there, which means we do have a little insight into where the coin is going.
Ripple is tied to a tonne of businesses and firms across the globe, and to keep things brief, these businesses all make use of the service in a few different ways — though mainly for low-cost and high-speed transactions.
That in mind, this means that Ripple is going to move with the flow of the economy in a more direct way than some of the other coins out there.
In all, experts are touting that when compared to alternative coins on the exchange today, Ripple does have a better chance of success. This is down to the fact that it’s supported by those firms we mentioned, but also some big players like international banks and investment firms that use the service and keep it afloat.
It’s in these firm’s best interests to keep XRP operable, and that in mind, there are some pretty big fish behind the coin.
The Trading Volumes and Changes
A second metric to keep an eye on for Ripple this year are the trading volumes and changes in value between the yearly quarters. When it comes to getting detailed insights in crypto, choosing to invest in Ripple with Independent Reserve is a good place to start given that there’s a tonne information per-trade here.
In the first quarter of last year, for example, Ripple climbed a staggering 72 per cent between the quarter prior which may highlight that this could again happen in the year ahead. However, as we all know, past success isn’t an indicator for future success with a cryptocurrency.
Add to this the fact that Ripple is actively working to stabilise itself and remove as much of the volatility as possible. This is good news for most investors across the long term as you’ll be able to use the coin as a long-term investment above a short term one.
For example, all of the large brands and business’s tied to the coin are what will work to starve off this volatility and potentially keep XRP growing steadily but surely into the future.
To give you some insight, some of the firms and companies using the XRP platform include the following:
- American Express
- Royal Bank of Canada
- International Foreign Exchange
- Crédit Agricole
Those in mind, it’s important to understand that the success and growth of the above companies may also have an impact on the XRP price and long-term growth.
Expert Price Predictions
When we delve into what analysts and experts are saying about Ripple, we can see that the overall consensus about the coin is that there’s a major chance for growth once XRP stretches beyond the $0.21 price.
On top of this, experts have also outlined that Ripple and the coin’s focus on capturing new firm and bank clients is going to continue to push the price forward in 2021 which means you’re potentially looking at a slow-moving, but steady climb in price for Ripple this coming year.
One final thing to note is that XRP is noted to have begun working on integrating a type of technology that is offered by Ether in their Smart Contracts, which may make the coin a whole lot more enticing for buyers and could set the price even higher in 2021.