Things are heating up for Ripple’s native cryptocurrency XRP , with the possibility of a massive wave of institutional liquidity. And this time the excitement is linked to Citigroup.
Recent reports have revealed that former Citigroup executives have been working on creating and introducing XRP-backed securities. This move is expected to clear a path for more institutional accumulation.
Source: X
An influx of institutional liquidity might do to XRP, what ETFs did for Bitcoin. This means a significantly higher floor price for Ripple-native coin.
It also signals that XRP might turn out to be one of the most bullish coins in the next 12 months.
The launch of XRP-backed liquidities may also trigger more speculation among investors, which can potentially translate to more volatile price movements.
Is Ripple on the Cusp of Mass Adoption?
But just how probable is it for an outcome where robust institutional interest manifests?
The crypto market has been waiting for the conclusion of the Ripple-SEC legal battle to act as the white swan for Ripple and XRP.
While the world waits for more clarity over the legal situation, the aforementioned institutional adoption may spice things up.
However, there are other developments which reveal that Ripple might finally get a chance to tap into its full potential.
Among those developments include a recent interview during which Ripple’s CTO, David Schwartz stated that mass institutional adoption is coming soon.
His comments also pointed towards the possibility of Ripple partnering with institutions to improve the financial system.
Source: X
The expectations of institutional adoption align with reports that Ripple could be linked with Swift through a third party. If true, it could underscore adoption especially from institutions.
The traditional banking industry has been lacking as far as innovation is concerned. Ripple is one of the blockchain-based that aimed to bring more efficiency into the banking industry.
Source: X
Is XRP Already Experiencing a Surge in Demand?
XRP had a bearish first week of August with price dropping by more than 10%.
However, it is worth noting that the wave of pressure has run its course or appears to have paused for now.
Price did demonstrate a shift back in favor of the bulls following some accumulation in the last 2 days, which could perhaps indicate an incoming reversal.
It is also worth noting that XRP has so far held on well to most of the gains achieved within the last 4 months.
An indication of confidence among its holders, expecting more bullish excitement this year.
Spot flows have been relatively weak since Friday but excitement appeared to be bubbling in the derivatives segment.
Options open interest was up by +214.43% to $541,250, indicating renewed interest in XRP.
These observations could signal that another wave of bullish demand might be brewing.
However, this excitement also warrants caution considering that the legal battle is not won yet.
