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Factors That Affect XRP Price in Australia    

by Aishwarya Gaikwad
Factors That Affect XRP Price in Australia

Ripple XRP is one of the prominent cryptocurrencies today. Unlike Bitcoin, a decentralised currency, this digital currency is partly managed and issued by a payment solutions company, Ripple Inc. The company also manages RippleNet, a cross-border payment network. The XRP price (AUD) soared at the beginning of 2021 when its price jumped from $0.2 to $0.5 in February, and by April, it reached close to $1. Later, it closed at the $1 mark with a yearly high of $1.9.

Interestingly, you can use XRP like you use any other digital currency for investment or transactions. Besides, you can use the Ripple network to process any other type of transaction, even exchanging currencies. For example, if you want to swap AUD for USD, you first need to exchange your AUD for XRP on the Ripple network, and then you can use the XRP to buy USD.

Ripple XRP is a currency that has been tailored to work in the Ripple networks. So, instead of handling the currency exchange through a bank, you can do it directly on the Ripple network at a lower price and at a much higher speed.

Factors That Affect XRP (AUD) Price In Australia

Several factors affect the price of Ripple XRP price (AUD). Let’s take a look at each of them in detail below.

Availability of the Coins

The current circulating supply of XRP is over $45 billion tokens. When XRP was initially launched, it had 80 billion coins available for purchase, while the rest 20 billion were divided amongst the founders.

Most people don’t know this, but a small amount of XRPs is destroyed(currently 1/1000th of a Ripple) with each transaction to protect the XRP Ledger spam and denial-of-service attacks.

This means that as time moves on, there will be fewer XRP tokens. The gradually diminishing supply of the coin helps maintain or increase the demand. This also makes the coin more desirable in the cryptocurrency market and keeps its prices in check.

Multiple Use Cases

As XRP is specifically designed for use by payment providers and financial institutions, it is the only cryptocurrency with a clear use case behind it. So, even though it is limited to the Ripple Labs Network, it has multiple uses such as international money transfers, in-app purchases, smart contracts, and more.

Due to its built-in uses and easy adoption, it has become a desirable currency for a larger set of investors. Since cases for its use only continue to grow, its price is also predicted to go upwards.

For example, if more institutions accept XRP, people will be more interested in holding the currency. This will encourage more people to trade in XRP regularly. Consequently, the supply and demand will push the prices of each coin higher.

Traders’ Sentiment

Similar to bitcoin (BTCUSD), Ethereum, or any other cryptocurrency, you can trade XRP in the marketplace. So, just like the price of shares, commodities, or any other instrument, an increase in the number of interested consumers in the market can increase its prices. As the demand increases with the supply, the traders holding the XRP can choose to raise the coin’s price to whatever they can get in the market.

Ripple has been in legal trouble with the securities and exchange board (SEC), but its prices are soaring despite this. The good news floating is that the case against it is going weak, and the bullish market matches the sentiments of its investors.

Future Predictions About Ripple XRP

According to the XRP price (AUD) patterns, analysts expect collaborations with financial institutions to drive its prices. And if that happens, it will grab the attention of more investors due to being fast and cost-effective amongst the existing cryptocurrencies. As a result, its price might hit the $1.673 mark by the end of 2021 with a strong market.

On the contrary, if it shows a bearish trend, the prices may fall, but that too only for a short time to recover quickly. But, if it maintains the current market supremacy of 2.65%, it may even trade at $1.213 by the year-end.

If the XRP closes at its lowest mark, then it might resume with the same bearish note in the next year. So, you can expect the price at $1.017 starting January. But in case it closes 2021 at a high, the same trend may continue in 2022, with prices reaching as high as $1.681.

While all the future predictions about Ripple look strong and promising, it is still important to note that the crypto market is volatile. Its dynamic nature makes it quite unpredictable.

So, these are just estimates based on current and future trends. Therefore, if you want to invest in Ripple XRP, make sure you monitor the XRP price (AUD) and research the market well beforehand. Also, consider expert opinions, latest market trends, and technical analyses before making any final decision.

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