- In the course of financial market turmoil, digital assets often referred to as safe-haven assets to which market players often prefer.
- Looking at the current scenario, these assets evaluated in terms of COVID-19 impact on the global financial ecosystem.
- In this series, ripple has released a report that highlights XRP as a preferred base currency for arbitrage trading.
In the course of financial market turmoil, digital assets referred to as safe-haven assets. To which market players often prefer. Looking at the current scenario, these assets evaluated in terms of COVID-19 impact on the global financial ecosystem. In this series, Ripple has released a report that highlights XRP as a preferred base currency for arbitrage trading.
Users shifted to XRP network
XRP's speed, low transaction cost and scalability makes it incredibly well suited to take advantage of price differences and reduce risk exposure for inter-exchange transfers. Learn more about #XRP here: https://t.co/WxNDTSmqyE
— Breanne M. Madigan (@BreMadigan) May 28, 2020
Moreover, at the time of the sudden market crash, which is popularly known as a “Black Thursday.” The per-day transaction fees hiked five times on Bitcoin and Ethereum’s network. It also resulted in lagging settlements and uplifting the price of exchange.
Due to this issue, the users started deviating towards the XRP to transfer exchange balance, per analysis.
XRP reduces the exposure to several risk factors
The report further depicts, the traders leverage XRP to swiftly service margin calls. Also, manage risk due to its low transaction fees, reliability, and speed. These worthy features allow traders and market markers to gain the advantage of arbitrage opportunities intra-exchange during market stress.
Besides its unique consensus authenticate design, XRP offers market makers and traders with a high-speed vehicle. In order to move their funds from exchange to exchange.
The speed of XRP offers it to capture huge price differences between the exchanges. It also axes the exposure to several risk factors involved in those arbitrage trades.
Recently, the CEO of Bitrue, Curis Wang notified that the company is planning to shift to XRP. According to Wang, the use of currency is practical and scalable that makes the company focus on its business.
Furthermore, the report says that the lower transaction costs of altcoin offer users to take benefit of trading opportunities. The cost of each transaction is a fraction of a cent. This allows users to get profit from smaller variations in price between the exchanges.
It was estimated that around 50 Million ledgers have been closed safely since its commencement. Also, many prominent financial institutions are already leveraging XRP to enhance the global payment experience of their users.