Cryptocurrencies are known for their high volatility, and XRP is definitely not an exception. While XRP has always been on the list of top 10 digital assets, it has failed to offer substantial gains to investors for a while. Nonetheless, recent events signal that the XRP is yet again becoming a hot topic, creating an opportunity to break free from Bitcoin and set a new trend in the market.
Unlike other Cryptocurrencies that have spiked over the last year or so, XRP has only fluctuated slightly – staying in the $0.5 (£0.36) mark. This stability, however, may not be a weakness but a strength in disguise, mostly used to eliminate vulnerabilities that occur when an entity is overstretched. Thus, XRP’s market capitalisation of roughly $25 billion (£19 billion) shows that it is 5% of Ethereum, which promises great potential for development.
Legal Hurdles
Among the major setbacks for XRP are the legal tussles between Ripple and the US Securities and Exchange Commission (SEC). However, based on recent developments, this case may end soon, and the dust will finally settle. Typically, the settlement of this legal suit in question will bring more retail and institutional demand for Ripple’s token – XRP.
Real-World Utility
While most Cryptocurrencies have challenges finding actual use cases, XRP has a clear purpose as the currency for Ripple’s cross-border payments system. And as a result, this allows the platform to make fast, low-cost cross-border transactions that have resulted in partnerships and adoption across different global organisations, increasing its usability in the real world and making XRP desirable and with growth potential.
Decoupling from Bitcoin
An interesting observation from the current performance of XRP has to do with its ability to be no longer influenced by the Bitcoin market. Unlike Bitcoin, XRP has been more stable in price, though like any other Cryptocurrency, it has had its fair share of highs and lows. This could signify that XRP is establishing its niche market to allow investors to diversify their investments.
Considering the technological advances within XRP and the fact that it has already been integrated into the international financial system, some analysts believe its current price is far from reflecting its true value. An argument based on Ethereum market capitalisation indicates that fair value per XRP is well above $5 (£3.9), which would be a ten-bagger on the present price.
Also, some Crypto enthusiasts have gone to the lengths of comparing the SEC case against Ripple to previous occasions of state intervention into favourable innovations, like the PROMIS software saga of the 1980s. Although these theories are still hypothetical, they point out how focused attention has been and maybe still is on XRP and how it disrupts traditional financial systems.
What the Future Holds
With increased time and market development, XRP can be seen as a significant, established Cryptocurrency and a secret weapon for large financial institutions. With its legal issues on track to be put to rest relatively soon, a tangible, practical application and a few years of price movements that seem more or less uncorrelated to the rest of the Crypto market, XRP seems primed for growth in the next few months and years.
All in all, it is worth noting that all investments, including Cryptocurrency, pose a risk and a great one, for that matter. Do due diligence before pumping your hard-earned money.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used for legal, tax, investment or financial advice.
