Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCryptos own research on the subject.
XRP is a cryptocurrency that was developed by Ripple Labs, a company that provides financial settlement and payment services to banks and other financial institutions. XRP is used by Ripple Labs as a means of facilitating cross-border payments and has gained significant adoption in the financial industry.
One reason for XRPs relatively strong performance may be its strong adoption in the financial industry. Many banks and financial institutions have begun using XRP as a means of facilitating cross-border payments, which has helped to increase demand for the cryptocurrency. Additionally, Ripple Labs has made significant efforts to promote the adoption of XRP, which has helped to increase its credibility and appeal.
In the early years of XRP, its price was relatively stable, with some periods of growth and others of stagnation. However, in the past year or so, the price of XRP has seen some significant fluctuations. In late 2020, XRPs price experienced a significant bull run, reaching an all-time high of over $3 in December of that year.
Read Price Prediction for XRP for 2023-24
According to data from CoinMarketCap, at press time, XRP was worth $0.36. The tokens market capitalization of $17.6 billion made it the sixth-largest cryptocurrency in the world.
The XRP ledger uses distributed ledger technology, which is different from the more commonly used blockchain technology. This technology allows bank and non-bank actors to incorporate the Ripple protocol into their own systems, as the protocol is completely open and accessible to anyone without prior approval from Ripple Labs.
In 2017 and early 2018, XRP reached an all-time high of $3.40, marking a 51,709% increase from its original price at the beginning of that year. Although it has since declined, XRP remains a significant player in the cryptocurrency market and is consistently ranked among the top ten coins in terms of market capitalization. The team behind XRP and Ripple continue to work on the development of the XRP ledger and its potential use cases in the global financial system. Overall, XRP remains a significant and influential cryptocurrency in the world of finance and technology.
In 2020, the US Securities and Exchange Commission (SEC) sued Ripple, alleging that the company sold $1.3 billion in unregistered securities through its XRP cryptocurrency. Ripple denies the allegations, claiming that XRP is not a security and does not meet the criteria for the Howey Test.
A report by CoinShares indicated that investors are confident of Ripples victory in the landmark case against the SEC. This is based on the fact that XRP investment products have seen consistent inflows for three consecutive weeks.
On the business front, Ripple revealed key developments pertaining to its European expansion. The company shared its progress with Paris- based Lemonway and Xbaht in Sweden. Businesses in France and Sweden will now be able to leverage Ripples On-Demand Liquidity (ODL).
On 15 November, Ripple announced that it partnered with MFS Africa, a leading fintech firm with the largest mobile money footprint in the continent. This joint venture seeks to streamline mobile payments for users in 35 countries.
In other news, Ripple CTO David Schwartz took to Twitter to offer former employees of the troubled crypto exchange FTX, a place at Ripple. However, this offer only stands for employees who were not involved with compliance, finance, or business ethics.
Ripples tie-up with Tokyo Mitsubishi Bank in 2017 was a major milestone. Following the same, it became the second-largest crypto by market capitalization for a brief period. A year later, Ripple was in the news again for its partnership with international banking conglomerate Santander Group for an app focusing on cross-border transactions.
In terms of rivals, Ripple has close to none at the moment. They are the leading crypto firm catering to financial institutions around the world. As the number of partnerships grows, XRP will reap the benefits. After all, it is the medium of exchange for all cross-border transactions enabled by RippleNet.
Ripple has been capitalizing on the need for quick transactions and another untapped potential in emerging economies, given that nations in Latin America and Asia-Pacific regions are more likely to realize the value of blockchain and its tokens compared to their first-world counterparts. With the rise of central bank digital currencies (CBDC), it is likely that developing countries looking to explore this option will go for Ripple since it already offers a well-established cross-border framework. Increased adoption of CBDCs will also lead to banking institutions considering integrating crypto into their services. This will work out very well for Ripple since RippleNet is already associated with a number of banks.
Blockchain solutions being offered to Ripples Central Bank partners wanting to venture into CBDCs include the option to leverage the XRP ledger using a private sidechain.
Ripple is predicted to develop rapidly over the forecast period, as it can be used for a variety of functions like accounting, investment, smart contract implementation, and decentralized programming.
XRP has an edge over its rivals due to its low cost of entry. The fact that a few dollars will buy tens of XRP seems appealing to new investors, especially those who prefer little investment.
According to a Valuates report, the cryptocurrency markets size is expected to hit $4.94 billion by 2030, growing at a CAGR of 12.8%. A number of crypto-firms will benefit from this, Ripple among them.
The growth in the cryptocurrency market is spurred by an increase in the demand for operational efficiency and transparency in financial payment systems, as well as an increase in demand for remittances in developing nations.
The general idea is that RippleNets adoption by financial institutions will increase, leading to more recognition of the platform as well as its native token. This has also been factored in while calculating predictions for 2025 and beyond.
At press time, XRP was trading at $0.3696, according to TradingView.
XRPs press time price was a far cry from its all-time high of $3.84 in January 2018. As a matter of fact, its price was closer to its launch price than its all-time high.
Although XRP gained somewhat over the last 3 months, its recent returns have investors worried.
On 22 December 2020, the U.S Securities and Exchange Commission (SEC)filed a lawsuit against Ripple Labs. The lawsuit alleged that Ripple had raised $1.3 billion through the sale of unregistered securities (XRP). In addition to this, the SEC also brought charges against Ripples top executives, Christian Larsen (Co-founder) and Brad Garlinghouse (CEO), citing that they had made personal gains totaling $600 million in the process.
The SEC argued that XRP should be considered security rather than a cryptocurrency and as such, should be under their purview.
A verdict in favor of the SEC will set a rather unpleasant legal precedent for the broader crypto market. This is why this case is being closely observed by stakeholders in the industry.
It is evident that developments in the lawsuit have a direct impact on XRPs price. Following the news of the lawsuit in 2020, XRP tanked by almost 25%. In April 2021, the judge handed Ripple a small victory by granting them access to SECs internal documents, which caused XRP to rise over the $1-mark A threshold that the crypto hadnt crossed in 3 years.
According to a tweet by Defense Attorney James Filan on 15 August 2022, the U.S District Court for the Southern District of New York dealt yet another blow to the SEC when Judge Sarah Netburn granted Ripples motion to serve subpoenas to obtain a set of video recordings for the purpose of authentication, dismissing the regulators claim that Ripple was trying to reopen discovery. This was in response to Ripples motion filed on 3 August 2022.
In the Opinion & Order published earlier in July, Judge Sarah Netburn condemned the SEC for its hypocrisy and actions which suggested that the regulator was adopting its litigation positions to further its desired goal, and not out of a faithful allegiance to the law.
The lawsuits verdict, whatever it is, will have a lasting impact on XRPs value. It is important to note that a verdict in favor of the SEC would make XRP security only in the U.S because the regulator does not have jurisdiction across the countrys borders. This should offset some of the damage to Ripple, given that it has a substantial amount of business globally
Carol Alexander, Professor of Finance at the University of Sussex, believes that XRP is unlike any other crypto. She believes that if Ripple manages to beat the SEC lawsuit, it could start taking on the SWIFT banking system. SWIFT is a messaging network that financial institutions use to securely transmit information and instructions.
In an interview with CNBC, Ripple CEO Brad Garlinghouse talked about the possibility of an IPO after the case with the SEC is resolved. Ripple going public will have a significant impact on XRPs price action in the following years.
In an interview with Axios at Collision 2022, Garlinghouse further stated that the current price of XRP has already factored in Ripple losing the case. If Ripple loses the case, does anything change? Its basically just status quo, he added.
As for his personal opinion on the verdict, Garlinghouse is betting that it will be in favor of Ripple. Im betting that because I think the facts are on our side. Im betting that because the law is on our side, he remarked.
Curiously, support for Ripple and XRP hasnt been universal really, with Ethereums Vitalik Buterin recently commenting,
XRP already lost their right to protection when they tried to throw us under the bus as China-controlled imo
Ripple and the SECs lawsuit is not just restricted to the courtroom. The matter is often covered by the media with both parties having been featured in multiple op-eds, often criticizing each other. Just this month, the market watchdog and the crypto firm were the subject of a heated exchange through pieces published by the Wall Street Journal.
On August 10, SEC Chairman Gary Gensler reiterated his stance on the definition of crypto assets and their oversight in his op-ed piece featured in The Wall Street Journal. Make no mistake: If a lending platform is offering securities, it . . . falls into SEC jurisdiction.
Chairman Gensler went on to cite the $100 million settlement that the regulator had reached with BlockFi, stating that the crypto markets must comply with time-tested securities laws. As per the terms of the settlement, BlockFi has to rearrange its business to comply with the U.S Investment Company Act of 1940 in addition to registering under the Securities Act of 1933 to sell its products.
In response to Chairman Genslers op-ed, Stu Alderoty published his own piece in The Wall Street Journal and did not mince his words while taking a shot at the regulator. Alderoty accused Gensler of side-lining fellow regulators (CFTC, FDIC etc.) and overreaching its jurisdiction, as opposed to the executive order by U.S President Joe Biden, which directed agencies to coordinate on regulations for crypto.
What we need is regulatory clarity for crypto, not the SEC swinging its billy club to protect its turf at the expense of the more than 40 million Americans in the crypto economy, Alderoty added.
A controversial article authored by Roslyn Layton in Forbes on 28 August pointed out that since 2017, the SECs Crypto Assets Unit has been involved in 200-odd lawsuits. According to Layton, this figure suggests that instead of coming up with clear regulations to ensure compliance, the regulator would rather engage crypto firms with lawsuits in an attempt to regulate by enforcement.
Ripple CTO David Schwartz found himself in a stand-off with Ethereum Co-Founder Vitalik Buterin earlier this month, after Buterin took a dig at XRP on twitter. Schwartz hit back and responded to Buterins tweet, comparing miners in the PoW ecosystems like Ethereum to stockholders of companies like eBay.
I do think its perfectly fair to analogise miners in PoW systems to stockholders in companies. Just as eBays stockholders earn from the residual friction between buyers and sellers that eBay does not remove, so do miners in ETH and BTC, Schwartz added.
Now, putting an accurate figure on the future price of XRP is not an easy job. However, as long as there are cryptocurrencies, there will be crypto pundits offering their two cents on market movements.
Changelly has gathered an average prediction of $0.47 for XRP by the end of 2022. As for 2025, Changelly has provided a range between $1.47 to $1.76 at max for XRP.
Finders conclusion from a panel of thirty-six industry experts, is that XRP should be at $3.61 by 2025. It should be noted that not all of those experts agree on that forecast. Some of them believe that the crypto wont even cross the $1 threshold by 2025. Keegan Francis, the global cryptocurrency editor for Finder, does not agree with the panel of experts. He predicts that XRP will be worth $0.50 by the end of 2025 and, surprisingly, a mere $0.10 in 2030.
According to data published on Nasdaq, the average projection for 2025 is around $3.66.
Are your XRP holdings flashing green? Check the profit calculator
Finders experts had a rather conservative figure for XRP in 2030. They believe that the crypto could hit $4.98 by 2030. In a statement to Finder, Matthew Harry, the Head of Funds at DigitalX Asset Management, revealed that he doesnt see any utility in XRP other than the speculation element.
According to data published on Nasdaqs website, the average projection for 2030 is around $18.39.
Year-to-date (YTD) figures from Ripples Quarter 2 earnings report have made it clear that despite the drop in XRPs price, demand for their On-Demand Liquidity service not only remained undeterred but actually grew by nine times year-over-year (YoY) with ODL sales totalling $2.1 billion in Q2. The report further stated that Ripple has pledged $100 million for carbon removal activities, in line with their carbon neutral objective and sustainability goals.
Ripples Crypto Trends report claims that NFTs and CBDCs are still in their nascent stages and as their potential is gradually realized, its impact on Ripples network and on the broader blockchain space will be visible.
It should be noted that while various experts have predicted XRPs price to increase in the following years, there are some who believe that XRP will lose all value by the end of the decade.
The major factors that will influence XRPs price in the coming years are:
Predictions are not immune to changing circumstances, and they will always be updated on new developments.
With the Fear and Greed index leaning towards fear at press time, it implies that more investors were experiencing confidence regarding Ripple.
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Ripple (XRP) Price Prediction 2025-2030: Assessing if XRP will fly after the lawsuit - AMBCrypto News