XRP is still among those cryptocurrencies that didn’t increase in prices as it should. Several previous bad events took a heavy toll on Ripple, such as the SEC lawsuit and the harsh competition in the crypto sphere. Now that the crypto market is rebounding, many investors are flocking to Cardano and Ripple. Should you consider buying XRP? Let’s assess in this XRP price prediction article.
What is Ripple?
Ripple is a San Francisco-based FinTech company behind the global payment platform RippleNet. They basically created the XRP ledger blockchain along with its native token XRP. In fact, Ripple company started way back in 2004, before even cryptocurrencies were invented. They were trying to create an Internet of Value and create their own money, and RipplePay was created back then. Their network was small and the software was centralized. That’s why later in 2012, RipplePay merged with another company called Open Coin, and together they formed what is known today as Ripple.
Why Makes Ripple a Good Investment?
Ripple is a project that allows users to send, receive, hold and move currencies across borders in a fast and reliable way. Our current system which relies on banks and payment gateways is slow, fragmented, and expensive. Ripple company can settle transactions in 3 to 5 seconds from anywhere in the world. It is in fact much faster than Bitcoin and Ethereum!
Additionally, the infrastructure is highly scalable and is able to handle more than 1,500 transactions every second. You might ask now, How is this all possible? Well, RippleNet uses the open-source XRP ledger blockchain to track, process, and guarantee all transactions. But unlike Bitcoin, XRP does not use Proof-of-work and has no concept of mining. This means that the blockchain’s power consumption is minimal and is able to keep transaction fees low. XRP transactions are handled by an independent community of validation nodes who maintain the network and the transaction protocol.
Another plus for Ripple is that they are anti-money laundering compliant, with fraud detection, sanction screening, and regulatory reporting in place.
Is the Ripple – SEC Case Valid?
Back in December 2020, the SEC slammed Ripple with a lawsuit for allegedly selling securities without a proper license. Of course, this statement is greatly debatable. First, cryptocurrencies were never considered a security, and by nature are not regulated. Second, there are no clear rules or specifics around cryptocurrencies yet. Ruling out that Ripple was dealing in a security that is not registered is plainly absurd.
The price of XRP immediately took a toll for the worst and dropped to USD 0.18 following the news. On the other hand, Block.one, the company behind EOS had the EXACT SAME allegations with the SEC, and they managed to settle within 1 year. Currently, there are many speculations that Ripple company is going to do the same.
Why XRP Prices Crashed in 2021
When the crypto market started to crash back in November 2021, XRP crashed from $1.3 and reached a low of $0.30. This 77% loss definitely drove investors away from XRP. However, most other cryptos also lost around the same. When the crypto market started to recover, XRP prices directly gained significantly and rose to the current price of $0.37, gaining around 23% within 1 week.
XRP Price Poised to Rise Significantly
The price of $0.30 for XRP is considered highly cheap considering the previous prices that it reached not so long ago. XRP never managed to reach its all-time high price of around $3. Moreover, less than 8 months ago, XRP price was around $1.30, more than x3 than the current price. If you were looking to buy XRP at today’s prices, it might be a good idea to wait for the breach of the $0.40 and a small consolidation around that price.
However, it all depends on the general outlook of the crypto market, and Bitcoin’s price action specifically. Currently, it looks like the market is prepping to increase in prices again. If this translates in higher prices, XRP is up for great returns.
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