- A recent study has found that traders within the crypto space swap their BTC and & ETH for XRP for their exchange balance transfers.
- A data scientist from Xpring highlighted in the blog post that the recent financial instability has put cryptocurrencies networks to the test.
A recent study has found that traders within the crypto space swap their BTC and & ETH for XRP for their exchange balance transfers. A data scientist from Xpring, Shae Wang highlighted in the blog post that the recent financial instability has put cryptocurrencies networks to the test.
As we see trading volumes increase, the buildup on the network's congestion does the same. As a result of this, it can be hard to move ETH & BTC in and out of different platforms. This means that many investors have moved to Ripple's XRP token for the simple reason of ease.
As trading activity increases, the congestion on the networks increases and can reach really high levels of transaction fees as both assets spike. Many investors can then turn to XRP as an alternative rebalancing asset.
The market is currently going through a weird phase. As the whole world experiences different reactions to the impact of coronavirus on the world economy, the XRP fees are remaining relatively stable. Wang further argued that the token can work as a British currency. She further said:
“It’s possible that traders do not hold enough XRP for rebalancing or liquidation, leading to converting their ethereum into XRP, to use as a bridge currency.”
This trend may remind you of a similar action happened in 2017. The head of developer relations at Xpring, Warren Paul Anderson said that a similar trend occurred three years ago and even led to the creation of xRapid. In 2018, the launch of xRapid saw the assets of the value grow significantly and brought out many bulls for XRP.