Ripple draws closer to dominating the global cross-border remittance industry
- Ripple expands its ODL presence into Africa through MFS Africa.
- Why Ripple’s approach for the African rollout has targeted a mobile payment gateway.
Ripple has continued to expand its ODL services through the rollout of new corridors across different global regions. Its latest announcement revealed that ODL is now available in Africa through a partnership with MFS Africa.
Read about Ripple (XRP) price prediction 2023-2024
Most of Ripple’s previous ODL corridors have involved banking institutions. The company notably opted to partner with one of Africa’s largest mobile payment gateways.
This strategy shift makes a lot of sense for the African market because a large part of the population in the continent is unbanked. Mobile money payments have more penetration than banking.
We’re thrilled to announce that our On-Demand Liquidity (ODL) solution is expanding via our partnership with @MFS_Africa!
Africa holds 70% of the world's $1T mobile money value, and ODL will further enhance digital payment rails across the continent.https://t.co/Ywd4dzBnZA
— Ripple (@Ripple) November 15, 2022
A change of tactic was thus necessary to enable optimal reach. This move may allow Ripple to position itself as a conduit for the future of the global remittance industry.
The potential impact on Ripple adoption and XRP demand
The ODL expansion means the Ripple network can now be used across most global regions. Ripple will likely continue expanding the network and this will translate to more utility. Things might kick into high gear in 2023 if the Ripple-SEC legal battle concludes on a favorable note.
The expanded use of Ripple’s ODL services is bound to boost network growth. Low demand courtesy of the bearish market has suppressed network growth in 2022. However, the largest network growth spike just took place this month.
This network growth recovery might boost investors’ sentiment and facilitate higher demand for Ripple’s XRP.
As expected, the weighted sentiment metric did register a sizable bounce in the last four days. This confirms that investors are shifting towards the bullish side. Similarly, Ripple’s market cap has recovered by roughly $2.1 billion so far this week.
Do these observations point towards a possible XRP recovery in the next few months? Well, a look at XRP’s short-term price action reveals that its bottom range has been moving within an ascending support line.
This has been the case since June and the recent crash this month resulted in a retest of the same support line.
XRP’s $0.37 price tag represents a 19% bounce from its $0.31 monthly low. The last time the price retested and bounced off the same resistance line, we witnessed a rally of more than 70%.
If a similar outcome is expected, then XRP is already on a bullish recovery trajectory. This means we could see more upside towards the end of the year.
However, both short-term and long-term performance are within the realm of uncertainty.