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Ripple Fundamental Analysis

In this article, we will focus on some of the
best Ripple price predictions for 2020, including fundamental analysis. In
doing so, we will be answering the following questions and cover these topics:

  • What is Ripple?
  • Why is Ripple useful?
  • What are the Ripple competitors?
  • Ripple pros and cons
  • Best Ripple price prediction 2020 and fundamental analysis

If you are interested in reading more about Ripple Trading, feel free to browse our full-length article talking about the matter.

What is Ripple?

Ripple is a payment protocol based on the code
first published in 2012, designed as a globally shared settlement system for
financial institutions, such as commercial banks and payment service providers.

The system is fueled by the XRP cryptocurrency which, the company states, is an entirely detached entity. Ripple aims to replace the SWIFT payments system which has been in use since 1973.

Why is Ripple useful?

As a SWIFT replacement, Ripple is secure, much quicker and much more efficient payment system for already established financial institutions.

What are the Ripple competitors?

Regarding the competition, Ripple’s competitors
can be divided into two categories. Non-blockchain institutional settlement
systems and those that are blockchain-based. Regarding this, we are going to
name the most important competitors:

  • SWIFT (non-blockchain, traditional payments
    solution used by most financial institutions)
  • Stellar
  • Nano
  • Streami
  • Bloom Solutions

(latter three are all blockchain-based)

Ripple Currency

Ripple pros and cons

Ripple’s pros and cons depend highly on the preferences of the individual you ask for an opinion. However, in this section, we are going to take a look at the pros and cons of those who value decentralization as one of the most important features of blockchain technology.

Pros:

  • The
    use case

Ripple’s
technology is already proven to be useful, mainly for faster and cheaper
cross-border payments.

  • Partnerships

Ripple
boasts with a formidable list of partner-institutions already using their
xRapid technology. Among those are:

  • Euro Exim Bank
  • American Express
  • Bank of America
  • FTCS
  • Ahli Bank of Kuwait
  • Santander
  • BFC Bahrain
  • ConnectPay
  • GMT
  • WorldCom Finance
  • Olympia Trust Company
  • J.P. Morgan
  • Rendimento

  • Blockchain
    capabilities

RIpple claims that their network will be capable of 1500 transactions per second, which would be more than many of its direct competitors are capable of. Given the fact, Ripple is on the path to becoming a standard in the fintech industry.

Cons:

  • Centralization

While it
does rely on the blockchain technology, Ripple doesn’t use decentralized
mechanisms to validate transactions but centralized servers controlled by the
company. Also, all 99.991.643.723 XRP coins are pre-mined by the company,
making Ripple one of the most centralized projects in the blockchain industry.

  • Regulation

While the company believes that its underlying cryptocurrency XRP is not a security, this has yet to be confirmed by the US Securities and Exchange Commission (SEC), which, if the commission finds XRP to be a security, can bring massive amounts of negativity for Ripple in the cryptocurrency market.

Price Prediction

Best Ripple price prediction 2019/2020 and fundamental analysis

This paragraph will discuss the most important
Ripple price analysis for 2010 and the best fundamental analysis.

Coinswitch

Coinswitch mentions that there are some notable upgrades to be implemented in 2019 which can make Ripple rise towards the end of this year. They even give us the price of $1.20 as a possibility, while also giving enough room for XRP to even reach $2.

Regarding 2020, Coinswitch, based on a series of
third-party analysis,  go for a more
modest price prediction that places XRP’s average valuation around $1.40 or
$1.50, which would still present growth due to the possibility that Ripple’s
partners American Express and Lian Lian Group might be officially linked in
order to complete Chinese card payments.

Investinghaven

Based on the extensive fundamental analysis of
Ripple’s recent traction with institutions, and how the payment platform is
being backed by a series of institutional investors, this online market
analysis outlet is highlighting a highly positive possible price movement.

At the time of writing (6 months ago) they disclosed that there are hardly any sellers of XRP left below $0.42 and that the chart provided by the outlet may even be the foundation for the belief that the price of XRP could reach $20.

Best Ripple Price Prediction 2020 - Investinghaven.com

Source: Investinghaven

However, since then, XRP has dropped to today’s
$0.30, showing how cryptocurrency analysis can become a victim of fast-changing
market conditions.

Investing

After what we may call one of the most thorough
analysis online, published on April 12th, Investing.com brings us the XRP price
prediction which stated that it will be valued somewhere between  $0.5 and $0.6 in December 2019.

Furthermore, the analysis forecasts that during
the spring of 2020, XRP may reach the new all-time high of $9 fueled by their
partnerships and utilization of their payment protocol. However, their
prediction includes the correction towards the end of the year which will bring
the price down again just for it to settle between $6.50 and $7.50.

U.today

U.today discusses if Ripple can, fueled by
possible future partnerships, reach the price of $10 per coin in 2019.

In their article published on January 12th, they
quote a few sources that predicted various prices at the end of this year and
during 2020:

  • Fxstreet and express.co.uk – $3-$5 by the end of
    the year, based on the assumption that Ripple is one of the best investments of
    the year.
  • Ripple
    coin news – $8-10 dollars fueled by upcoming partnerships.
  • UsLifted – $22.79 with a circulating supply of
    38,739,145,924 XRP.
  • The Economic Forecast Agency – $0.32 in 2019.
  • Metro – $0.22-0.28 range due to BTC’s dominance
    over the market.

In the end, they offer us the price of $5 as, according to them, a realistic one which would represent a 17x return of the investment.

Conclusion

With this article, we answered some important questions and focused on some of the best Ripple Price predictions for 2020. If you are interested in reading more feel free to check our Technical Analysis of Ripple from April 2019 and/or our Fundamental Analysis of Ripple from November 2018.

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