XRP Struggles in Cross-Border Remittances as Stablecoins Take the Lead, Coin Metrics Reports
According to recent data analysis by Coin Metrics, a prominent blockchain data analysis company, Ripple’s native cryptocurrency, XRP, is trailing behind stablecoins in international remittance transactions. The analysis reveals that Tether (USDT) has emerged as the most popular cryptocurrency for on-chain remittance transactions this year, surpassing XRP, USDC, Bitcoin, and Ethereum.
The data clearly shows a significant disparity in on-chain transaction volumes between USDT and XRP during the month of July, with USDT’s volume being approximately four times higher than XRP’s. This highlights the limited usage of XRP itself for remittance purposes, despite Ripple Labs’ efforts to position it as a leading solution in the industry.
Interestingly, following a recent legal ruling, XRP has experienced a resurgence in market attention. Major cryptocurrency exchanges like Coinbase and Kraken promptly resumed trading on the Ripple network’s native asset, leading to increased interest.
Between July 13th and July 16th, Coinbase reported a spot trading volume of $250 million for XRP. Although this accounted for approximately 4% of the total spot trading volume of $5.7 billion during the same period, it signifies a renewed interest in XRP. However, it’s important to note that the spot trading volumes for Bitcoin (BTC) and Ethereum (ETH) on Coinbase during the same timeframe were significantly higher, reaching $1.9 billion and $1.1 billion, respectively.
These findings have significant implications for Ripple Labs and XRP. While Ripple has been actively pursuing partnerships with financial institutions worldwide to promote XRP as a bridge currency for cross-border payments, the data indicates that stablecoins, particularly USDT, have made more substantial progress in this domain.
In light of these developments, Ripple Labs may need to reassess its strategies and explore avenues to enhance the appeal and functionality of XRP for remittance purposes. As stablecoins gain popularity and adoption in the global remittance market, Ripple will face the challenge of regaining its position and relevance in the industry.
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