From being deemed "nothing but computer code with no inherent value" by the United States Securities and Exchange Commission (SEC) in the latest twist of their battle to now losing active users.
The coin receded from its weekly high of $0.532 and has now recorded a drop in active users. Indeed, it has reduced from 539.38K on September 1 to 497.24K at this time. Not backing down, Ripple has made plans to counter this decline in its system.
In this article, we shall examine what led to this drop-off in XRP's active users and what Ripple did in the aftermath.
XRP lost over 4,000 users as its active users reduced from 539.38K to 497.24K – a 7.8% decline in value. The data illustrated reduced interest in the coin post-XRP ruling.
For the token to retain its prominence, the bulls in its ecosystem are planning a motion to reboot their stake in it. Moreover, there is a rising demand for the coin as a transaction token for cross-border payments, which is expected to be beneficial for the growth of the coin.
The multifaceted use of the XRP token, that is, its interaction with the SWIFT, Bitcoin, and Ethereum networks – due to its partnership with GateHub and Xumm wallet (of which it is the creator) – is a pointer to a promising mid to long term future. This could only be achieved through collaborations with other top firms globally.
Likewise, to salvage its issue of reduced user count, Ripple has turned to a familiar tactic. This time, it has partnered with renowned financial company SBI Remit through SBI Group.
Ripple has teamed up with SBI Remit in a swift move, initiating a joint venture called "SBI Ripple Asia." This alliance aims to introduce XRP's remittance solution to bank accounts in the Philippines, Vietnam, and Indonesia, with plans to begin this month.
SBI Remit has been using Ripple's ingenious services for cross-border money transfers since 2017. Two years ago, in 2021, they introduced Japan's first-ever international money transfer solution to utilize XRP as an intermediary currency between two legal currencies and transfer crypto to a wallet in the Philippines.
Leveraging on past success, Ripple would be hoping that lightning strikes twice. The expansion will concern bank accounts in three Southeast Asian nations. Vietnam, Indonesia, and the Philippines were chosen due to their high ratio of remittances to bank accounts – making them perfect for this groundbreaking project.
SBI Remit will process customer remittance proposals in real-time by sending XRP. They have partnered with another notable remittance company, Tranglo, to guarantee users can obtain funds in their local currency.
Ripple has made reactionary moves in the wake of the decline in active users of XRP. Collaborating with a top firm to enable remittance solutions in top countries in Asia to secure that region is a smart play.
What happens next is anyone's guess. Will Ripple work with other firms in other continents? Will the partnership be fruitful? Can the number of active users increase?
Time will tell.
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