RippleNet Is Driving XRP Usage, Bringing In New Entrants With Its ‘Network of Network’ Effects

  • Real-world utility and adoption are still catching up – Breanne Madigan, Head of Global Institutional Markets at Ripple
  • The tipping point to critical-mass adoption of XRP & digital assets constantly moving closer

Trading in virtual currency has started making a shift from being speculative assets last year as giants like Fidelity, TD Ameritrade, and JP Morgan enters the space, said Breanne Madigan, Head of Global Institutional Markets at Ripple.

And the more the participants enter, especially traditional institutional players, in liquidity provisions the more aggressive the market, she said.

New institutional entrants like futures and derivatives according to her has been playing a big role in bringing investors into space and further stabilizing markets. She said,

“Continued growth in derivatives will open up access to more efficient capital and drive higher trading volumes throughout 2020 and beyond.”

Perpetual swaps are another most liquid and massively traded instruments. Just this month, Binance added XRP to its Futures trading platform.

Real-world utility and adoption catching up

Another sector with growth potential is the borrowing and lending market which she says is fueled by low-interest rates for fiat currencies, a boost in the amount of digital asset market participants, and increase of long-term digital asset holders looking to make yield.

However, digital asset value remains relatively low during this period. Madigan says the markets appear to be still undergoing a period where real-world utility and adoption are catching up. Madigan said,

“As institutional-grade infrastructure continues to be built, and real-world problems are increasingly solved using digital assets like XRP, the tipping point to critical-mass adoption is constantly moving closer.”

Digital assets’ market more stable than ever

She further explained that it’s RippleNet that is pumping the use of XRP. RippleNet is making it possible for financial institutions to connect and further their extended networks creating a ‘network of network’ effects. She said,

“As these network effects continue to increase, it will drive even more liquid markets and robust financial products around crypto, bringing new entrants into the ecosystem.”

In 2019, blockchain adoption became widespread with increased awareness of benefits such as cross-border payments. Even Steve Mnuchin, Secretary of the Treasury, said at the 2020 World Economic Forum,

“There are benefits to cross-border payment systems in lowering costs for consumers and businesses. We absolutely support companies working on this.”

Together, the expanded utility of virtual currency in cross border payments and opening of derivatives trading contributes to a greater liquid and stable market for digital assets than ever before with no sign of slowing down, Madigan said.

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Author: AnTy

NEXO Introduces 50% Interest Discount on Instant Crypto Credit Lines to Reduce Supply

  • NEXO’s utility features will now show a significant rise with the Discounted Interest of 50% on its Instant Crypto Credit Lines, using the Nexo Token.
  • The company is hard at work on the Utilities 2.0 Overhaul of their NEXO Token with a goal of bringing a host of new utility features.

NEXO will begin to execute a new improved policy of the 50% Interest Discount on its Instant Crypto Credit Lines, starting February 10th, announced the company on Wednesday. With the upgrade, the company says NEXO holders will see gains as “NEXO Token will experience a notable boost in its utility features.”

To collect the whole 50% discount, the company says customer’s wallets need to have sufficient Tokens to “cover the interest for the entire period from the moment of withdrawing funds from the credit line up to their desired moment of repayment.”

Customers that own staked NEXO Tokens for only a portion of the length of their loan, will collect on the discount that corresponds with the amount of days.

Customers that would like to benefit from the new Discount can also now use, NEXO, AUD, Stellar, USD, EOS, Bitcoin, as well as Bitcoin Cash, GBP, Ether, Litecoin, XRP, EUR and with all major stablecoins, with more assets coming soon for making repayments using all the assets accessible on the platform.

NEXO Token Holders Benefits

With the new changes, the company says it was designed to benefit the customers and owners of the tokens. Apart from providing the entire 50% Discount from the staking of their tokens, it allows holders to collect higher dividends.

Already, the company says it has allocated more in profits than all others in the blockchain ecosystem. Its dividend yield NEXO says has reached an “impressive 12.73%,” that surpasses “each of the highest dividend-paying stocks in the S&P 500.” Also, this “balances market volatility and results in a higher, more stable demand for NEXO Tokens.”

The company further says this upgrade will help in all long-term investors confidence by attracting customers to stake their NEXO Tokens over longer periods, which will lower the available market supply.

The 65th largest cryptocurrency currently has 560,000,011 NEXO tokens in circulating supply. At the time of writing, NEXO/USD has been trading at $0.139897 with 24 hours gains of 3.56%. If the supply of NEXO gets reduced while demand either stays the same or increases, the price is expected to take a jump.

Meanwhile, NEXO is planning further improvements and is working on revamping the NEXO Token Utilities 2.0, which can quickly usher in several utility features including higher Nexo card cashback, higher affiliate commissions, and better interest rates on both our ‘Instant Crypto Credit Lines’ and ’Earn Interest’ products.

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Author: AnTy