- RippleNet is promising; XRP is not
- Minor legal wins are lifting XRP’s price
- Swing trading XRP might be the best course of action
Ripple’s(XRP-USD) XRP made strong gains in the past month. The digital token has been up to over 20% in the past 30 days, as the market prices in the positive developments in its dispute with the Securities and Exchange Commission (SEC). Despite the favorable developments in the case, there is still plenty of uncertainty with XRP-USD as a long-term bet.
Ripple Labs is the company behind its namesake payment protocol and exchange. Roughly a decade ago, it created its first digital currency, XRP, to facilitate online money transfers. CEO Chris Larsen thinks that Ripple “is the first viable alternative to correspondent banking.”
Fast forward to December 2020, the SEC sued the crypto platform and its executives for alleged illegal sales of unregistered securities about XRP. The delays in the case have taken a toll on the XRP token and its prospects. Also, Larsen’s tall claims about Ripple are a stretch that hardly justifies a long-term case.
What are RippleNet and XRP?
Investors often confuse RippleNet and XRP, which muddles their perception of the Ripple token. RippleNet is a global payments platform enabling multiple financial institutions to make low-cost payments across 40 different countries. XRP is a digital currency and native asset of the XRP ledger. RippleLabs, the company behind the two, owns over 50% of the total XRP in existence, which it can release at any point. Moreover, nothing can stop it from producing coins, if so desired.
Ultimately the goal for RippleLabs is to promote its payment system and use XRP as a tool for its development. RippleNet deploys its On-Demand Liquidity (ODL) service to use XRP to bridge currencies. The payment platform isn’t compelled to use XRP but hopes to increase adoption in the coming years.
To be sure, mainstream adoption of XRP seems highly unlikely at this point. I don’t expect banking institutions to accept a platform embroiled in so much controversy. Moreover, with XRP being a public blockchain, financial organizations are likely to be sensitive about transactional information.
Is XRP A Long-Term Bet?
XRP is one of the few cryptos that failed to get going during the pandemic. Due to its tussle with the SEC, it failed to get going at a time when most of its peers were posting record gains. However, if it could emerge victorious in its case with SEC, recovery could be on the cards. However, a long-term case is tough to build for XRP at this point, based on the points discussed earlier.
Assuming things go south for XRP, who’s to say RippleNet won’t use another different crypto as a settlement base? It could also start a new one from scratch or meddle with XRP’s supply. Nevertheless, minor legal victories can spark intense retail action for the token. Positive developments in its case during April, May, and October last year triggered an incredible rally in XRP’s price.
In February this year, it gained 30% after it got permission to explain its fair notice defense against the SEC. Similarly, in March, the presiding judge denied the agency’s motion against Ripple’s fair notice defense. Looking at these events, XRP could perhaps be an interesting short-term play until the dust settles on its regulatory crisis.
Bottom Line on XRP-USD
A lot is riding on the SEC’s case on Ripple for the broader crypto market. However, for XRP, a positive result is unlikely to kick start a massive rebound, as some investors think. Volatility is perhaps the only certainty with Ripple, and it could be a great time for its investors to rake in some profits.
Its regulatory documents and the suggest that the case continues into the fourth quarter this year. That should give plenty of time for investors to take advantage of the swings in its price stoked by the latest on the SEC lawsuit against Ripple.
As always, though, it’s best to invest only an amount you can afford to lose in the crypto market. The market will remain volatile as ever, which is why it’s best to invest in coins with substantial use-cases and relatively stronger outlooks such as XRP.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
FAQs
“Investing in XRP is risky and may not be suitable for most investors due to the high price volatility and the difficulty in predicting future trends in the cryptocurrency market,” Drozdz says. This advice highlights the need for prospective investors to consider their own risk tolerance and financial goals carefully.
How high can XRP realistically go? ›
Therefore, our XRP price prediction forecasts a price of $1.80 by the end of 2024. Depending on the lawsuit's outcome and crypto market conditions, it could go much higher, potentially reaching $3.10.
Why not to invest in Ripple? ›
XRP's regulatory issues
According to the SEC, XRP is a "security," and it is doing everything in its power to regulate it as such. That's terrible news for investors. It means that XRP's core business operations have been sidelined in the United States until this regulatory mess gets cleared up.
How much will XRP be worth if it replaces Swift? ›
In a recent proposal by Edward Farina, the Head of Social Adoption at #XRPUpdate Healthcare, a hypothetical scenario was presented whereby the price of XRP has the potential to see a significant increase, reaching a value of $10,000.
Does XRP have a future? ›
Our real-time XRP to USD price update shows the current Ripple price as $0.56 USD. Our most recent Ripple price forecast indicates that its value will increase by 23.38% and reach $0.674785 by April 24, 2024.
Can XRP reach $100 dollars? ›
Can XRP price reach $100? While it's theoretically possible for XRP to reach this price, it would require substantial market shifts or a major supply reduction. If the project were to reform significantly to drive value to the XRP token, there is every chance that XRP could soar to new highs.
What will XRP be worth in 5 years? ›
Long-term XRP price prediction for 2025, 2026, 2027, 2028, 2029 and 2030. Based on the historical price movements of XRP and the BTC halving cycles, the yearly low XRP price prediction for 2025 is estimated at $ 0.326575. Meanwhile, the price of XRP is predicted to reach as high as $ 1.606442 next year.
Is Ripple worth keeping? ›
“Investing in XRP is risky and may not be suitable for most investors due to the high price volatility and the difficulty in predicting future trends in the cryptocurrency market,” Drozdz says. This advice highlights the need for prospective investors to consider their own risk tolerance and financial goals carefully.
Is XRP designed to be $10 000? ›
Summary: The design choices behind XRP lead us to believe that it was crafted to operate at $10,000 and cater to a truly global market.
How much will 1 XRP cost in 2030? ›
Lastly, as per the XRP Price Prediction 2030, XRP's price is forecasted to range between $13.80 and $16.24, making an average of $15.02. This long-term optimistic view hinges on Ripple's increasing global recognition and adoption.
July 13 (Reuters) - Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges, a U.S. judge ruled on Thursday, a landmark legal victory for the cryptocurrency industry that sent the value of XRP soaring.
What crypto will explode in 2024? ›
Five DeFi platforms primed to explode in 2024
Scotty the AI ($SCOTTY): A newly emerging AI-based platform with a seamless DEX. Jupiter Perpetuals Liquidity Token ($JLP) : The LP token for the Jupiter DEX. Uniswap ($UNI): The king of DEXs on Ethereum. Aave ($AAVE): A DeFi borrowing and lending platform.
Are banks already using XRP? ›
Ripple (XRP) is a popular choice among banks worldwide. The network's fast transaction speeds, low gas fees, and energy-efficient consensus make it an ideal cryptocurrency for traditional financial institutions.
Will XRP skyrocket? ›
The XRP price analysis on this chart look conservatively positive at the moment, with what seems like a slight climb likely precipitated by the 2023 year end Crypto rally. 2024 looks to be a potentially exciting year, as XRP's market cap has gone up to $33.256B as 2023 comes to an end.
Will Ripple hit $5? ›
Ripple's rocket ride may be risky
But it would be a mistake to expect skyrocketing prices in 2024, and $5 is an unrealistic target for the next few years. The true wealth-building gains will come in the long haul, as RippleNet expands to more countries and becomes more widely used.
What will XRP be worth in 2040? ›
Based on our long-term XRP Coin price forecast, we anticipated that prices could reach a new all-time high this year. By 2040, the maximum price of the XRP Coin is projected to be around $22.199. Our average price forecast for XRP is $21.746 in 2040.
Can XRP hit $1000 usd? ›
It is possible for XRP to reach $1,000 USD, but it is highly unlikely in the near future.
Can XRP ever reach $500? ›
To reach a price of $500, XRP's market capitalization would need to exceed $260 trillion, which is more than 260 times greater than the entire cryptocurrency market's current capitalization.
Is it possible for XRP to reach $500? ›
The $500 mark for XRP remains almost unattainable, given the astronomical market cap it necessitates. However, factors like Ripple's IPO success and a decisive legal victory against the SEC could significantly impact its trajectory in the long term.
