The cryptocurrency market has been experiencing a downturn, with many coins and tokens seeing significant drops in value. XRP, which is used in the Ripple Payments network, has been particularly affected, falling by 60% since its peak last July.
One of the main concerns for XRP is its real-world utility being threatened. Not all global banks use the same payment infrastructure, and some may choose to use alternatives to Ripple Payments, which could reduce demand for XRP.
Ripple Payments was designed to enable banks to communicate directly with each other, eliminating intermediaries and reducing costs. However, this also means that banks can still benefit from instant cross-border transfers using fiat currencies, rather than relying on XRP.