XRP has become a focal point in the cryptocurrency community, especially with its recent performance and ongoing legal challenges. Lark Dewis, a renowned entrepreneur and crypto investor, recently shared his insights on the future of XRP. His analysis covers the implications of the SEC lawsuit, the potential for XRP’s growth, and the latest developments that could influence its trajectory.
The SEC Case and Its Impact
The Securities and Exchange Commission (SEC) initiated a lawsuit against Ripple Labs in 2020, alleging that XRP was sold as an unregistered security. This legal battle led to significant volatility in XRP’s price and resulted in its delisting from several exchanges. However, a court ruling in July 2023 clarified that XRP is not considered a security when traded on public exchanges, providing a boost to its market position.
Recent developments have further bolstered XRP’s standing. A report from MessariCrypto, titled “State of XRP Ledger Q3 2024,” highlights the progress of the XRP project. Dewis highlighted several key insights from this report, indicating the evolving nature of the XRP ecosystem.
Key Insights into XRP’s Progress
One of the significant developments is the plan to integrate native smart contracts into the XRP Ledger (XRPL) through an XLS proposal. This enhancement aims to increase the platform’s functionality, enabling the creation of decentralized applications and expanding its use cases.
Additionally, the XRP Ledger has experienced a substantial increase in activity. The average daily transactions have surged by 94% quarter-over-quarter, reaching 1.7 million, while the number of new addresses has risen by 10% to 105,000. This growth suggests rising adoption and interest in XRP.
Moreover, Ripple has launched its USD-pegged stablecoin, RLUSD, in private beta testing on both the XRP Ledger and Ethereum. Pending approval from the New York Department of Financial Services, this development could significantly enhance the utility and adoption of the XRP Ledger, acting as a potential bullish catalyst.
Furthermore, a native lending protocol is under development, designed to allow users to lend and borrow supported assets, including XRP, stablecoins, wrapped Bitcoin, and wrapped Ethereum, through single-asset vaults.
Assessing XRP’s Growth Potential
Despite XRP’s recent gains, Dewis remains cautious about its future growth. With a market capitalization of $135 billion, expecting a 1000% return seems improbable. A tenfold increase would push XRP’s market cap to an ambitious $1.5 trillion. He noted that reaching the 4.236 Fibonacci level, around $7.3, represents a potential threefold increase, though there is no guarantee of achieving this milestone.
However, should regulatory landscapes shift favorably, such as the exclusion of Gary Gensler and the election of a pro-crypto president, there could be possibilities for an upside. The approval of RLUSD could also serve as a tailwind, boosting XRP’s prospects.
Positive Developments for XRP
Recent political developments could further influence XRP’s future. Former President Trump has nominated David Sacks, a venture capitalist, as the White House AI & Crypto Czar. Sacks is known for supporting Ripple in its legal battle with the SEC. Ripple’s leadership, including CEO Brad Garlinghouse and CLO Stuart Alderoty, anticipates that Sacks will advance Trump’s pro-innovation agenda in crypto and AI, potentially benefiting XRP and other cryptocurrencies like ZRX.
Impact of the SEC Appeal
While these developments offer hope, the potential SEC appeal remains a concern. The SEC is required to file its appeal-related opening brief by January 15, 2025, before Chair Gensler’s departure. Despite Gensler’s recent actions against crypto firms, there’s a possibility that Paul Atkins, if appointed, could withdraw the appeal, establishing the XRP ruling as a crucial legal precedent for the US crypto landscape.
In conclusion, while XRP has demonstrated resilience and potential for growth, its future remains contingent on regulatory developments and market dynamics. Investors should stay informed and consider these factors when evaluating XRP’s prospects.
