In the ever-evolving world of cryptocurrency, XRP has recently caught the attention of investors and enthusiasts alike. Lark Dewis, a prominent entrepreneur and crypto investor, has shared his insights on the potential of XRP, discussing the impact of the SEC case, recent developments, and the cryptocurrency’s future prospects. Let’s delve deeper into the current state of XRP.
Recent Performance and Market Trends
XRP has astounded the crypto community with its recent performance, boasting a remarkable 35% increase in value over the past week. Currently trading at $2.29, XRP has broken through the one-dollar barrier and achieved significant milestones, almost tripling in value at one point. However, the pressing question remains: Is XRP still a worthwhile investment, or is it merely benefiting from the altcoin season effect?
SEC Case and Its Impact
The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in 2020, alleging that XRP was sold as an unregistered security. This legal action led to a sharp decline in XRP’s price and its delisting from several exchanges. However, a court ruling in July 2023 clarified XRP’s status as a security on public exchanges, offering a glimmer of hope for the cryptocurrency.
Recent Developments
Recent developments have further bolstered XRP’s position. A MessariCrypto report titled “State of XRP Ledger Q3 2024” sheds light on the project’s progress. Key insights from the report include:
- Plans to introduce native smart contracts on the XRP Ledger (XRPL) through an XLS proposal, enhancing the platform’s functionality for decentralized applications.
- A surge in average daily transactions on the XRP Ledger by 94% quarter-over-quarter, reaching 1.7 million, alongside a 10% increase in new addresses, indicating growing adoption.
- Ripple’s announcement of its USD-pegged stablecoin, RLUSD, entering private beta testing on the XRP Ledger and Ethereum, awaiting approval from the NYDFS.
- Development of a native lending protocol enabling users to lend and borrow supported assets using single-asset vaults.
How High Can XRP Go?
Dewis evaluates XRP’s potential for growth, noting its current market cap of $135 billion. While a 1000% return seems improbable at this stage, a 10x increase, pushing the market cap to $1.5 trillion, remains a distant possibility. The 4.236 Fibonacci level is around $7.3, representing a potential 3x increase. However, this target is uncertain. Favorable developments, such as the departure of Gensler and the approval of RLUSD, could provide positive momentum for XRP.
Positive Developments for XRP
In recent news, former President Trump has nominated venture capitalist David Sacks as the White House AI & Crypto Czar. Sacks, known for his favorable stance towards Ripple, is expected to advance Trump’s pro-innovation plans for crypto and AI. This development could bring upward momentum to XRP and other cryptocurrencies he supports, including ZRX. Notably, XRP’s price has surged by 400% since Trump’s election victory.
Impact of SEC Appeal
While Trump’s actions suggest a pro-crypto stance, the SEC’s potential pursuit of an appeal could affect XRP demand. The SEC must file its appeal-related opening brief by January 15, 2025, before Gensler’s departure. Chair Gensler’s final efforts against crypto firms and recent promotions indicate an intent to proceed with the appeal. However, if Paul Atkins withdraws the appeal on Day 1, the Programmatic Sales of XRP ruling could become a pivotal legal precedent for the US crypto landscape.
Conclusion
In summary, XRP’s future remains a topic of interest and debate within the cryptocurrency community. While recent developments and legal clarity offer optimism, potential challenges and uncertainties linger. Investors should carefully consider these factors when evaluating XRP as a viable investment option.
