The economy of cryptocurrencies has been on a steady increase over the last few years. There have been some ups and downs with many investors now experiencing bullish gains albeit at a steady rate. While most attention has been on Ethereum (ETH) and Bitcoin (BTC), Ripple (XRP) has struggled in the past few months due to an ongoing lawsuit.
As of May 2023, XRP ownership has been below 50 billion, lower than half of the asset’s outstanding supply. This is largely a means to save the Ripple network from the lawsuit from the Securities and Exchange Commission (SEC). The verdict is drawing near, and the situation of the conflict is in XRP’s favour. Thus, experts foresee great gains for Ripple and its investors in the years after that.
What is the lawsuit that Ripple (XRP) is involved in?
The SEC is the agency in the United States (US) government tasked to regulate securities markets in the country to protect investors. They accused Ripple of offering XRP as an unregistered security as an investment to the US. In Ripple’s defence, they have never intended the asset to be traded as a security but as a currency like BTC for trading and for use of services like casino crypto gaming.
If the SEC wins the case, then XRP will simply move out of the country and grow without US investors benefiting from it. The former know that this is a lose-lose situation but how they define securities and currencies requires them to step in as regulators of such assets. Ripple is willing to defend itself by paying $200,000,000 to stay in the US for the best of their investors’ interest.
What is Ripple?
Ripple is a digital payment network that uses a unique decentralised protocol designed to be scalable and cost-effective compared to most cryptocurrencies. The intended use for it is to help banks and corporations transfer money between accounts. Traditional banking follows a difficult system that ends up becoming expensive for banks, especially if conversion between fiat is required.
As long as there are central banks that are part of the Ripple network, banks can transfer and convert between each other by exchanging them with XRP. Thus, a blockchain network becomes more valuable the more banks or corporations join its ecosystem.
Individual investors also have small-scale use for the XRP crypto. It’s accepted on many e-commerce platforms as a mode of payment like BTC and ETH. Likewise, it’s also usable for entertainment services like casino gaming or sports betting.
XRP is also volatile despite its relatively cheap market price. Its price volatility takes a slower rate when compared with the likes of Bitcoin so most people invest in its services rather than using its asset as a store of value.
XRP current status
Ripple is currently dealing with the lawsuit with the SEC but the company behind it has assured that the network can grow outside of the US. Thus, investors are more interested in what it holds for the future. Here are a few factors that one should look forward to regarding the XRP.
Further acceptance of XRP
Investors on the Ripple network are waiting for the lawsuit to be resolved so projects surrounding it can continue. It already has a strong support in the South Pacific with even the Japanese government vouching for XRP as a cryptocurrency, not a security. Nevertheless, the technology is widely adaptable and will revolutionise banking via a decentralised system.
Role of XRP in the crypto ecosystem
What makes XRP a big player in the crypto ecosystem is that it is distinguished as the bridge currency in the network. Its interledger protocol allows routing of payments that multiple entities can interact with using gateways. This is what makes foreign exchange (Forex) more viable for investors, allowing everyone in the world to boost liquidity for all kinds of assets.
What to look forward to for XRP’s future
Analysts believe that XRP has the potential to break past more than $0.5 this year and reach $2 sometime in 2026. There are also expectations that it can reach $21 in 2032. This is possible because Ripple is one of the most popular networks in the world. It will remain in the top 10 of digital asset exchanges by market capitalization and trade volume, allowing it to remain in everyone’s watch through the years.
If you’re a small-time investor looking to profit from Ripple, then you can use it for quick buy and sell strategies, loaning, or even as simple as casino crypto gaming. Its low exchange rate (less than a dollar) makes it accessible and easy to purchase on any exchange. You can also loan it to other investors on the network to gain passive income which also ensures the growth of Ripple. Analysts foresee a bright future ahead of XRP investors and you can be one of its benefactors.