Contemplating Purchasing XRP, Often Referred to as Ripple, Given Its Current Value Below a Dollar?
The crypto market has been on fire lately. Any major crypto not categorized as a stablecoin has seen substantial gains in the last month. As of now, Bitcoin (BTC) has risen by 43% in 30 days, while Cronos (CRO) has more than doubled and Dogecoin (DOGE) has tripled.
In contrast, XRP (XRP) seems oblivious to this crypto market rally. Known as Ripple in the digital world, it managed to gain only 30% in the same time frame and is currently trading around $0.70.
Should this be a sign to invest in XRP and the connected RippleNet payment service, or will it continue to trail behind the rapidly growing cryptocurrencies?
The XRP Market Divergence
There's a notable difference between XRP and the broader crypto market. Most leading cryptos tend to move in sync, guided by Bitcoin's dominant market value. Even meme coins like Dogecoin follow this pattern, except when they see a spike or a crash due to internet craze.
However, XRP follows a unique path. While Bitcoin has doubled in value by 2024, XRP finds itself back at its 2024 starting point. Its chart doesn't mirror any other digital coin or token, typically influenced by court proceedings in New York.
The Impact of Legal Proceedings on XRP's Value
You've likely heard about it. The U.S. Securities and Exchange Commission (SEC) initiated a lawsuit against Ripple Labs and its leaders four years ago, alleging unregistered security sales during XRP's early days. This lawsuit kept XRP out of reach for American investors for 2.5 years and caused investors to lose confidence in XRP. Consequently, XRP's value rises when there's good news in court and plummets when things aren't looking so positive.
Despite favorable court rulings, XRP still lags behind the overall crypto market. Additionally, the RippleNet platform for international payments is a proven and valuable tool, yet investors don't seem to acknowledge its underlying crypto's worth.
RippleNet's Role in Enhancing XRP's Value
The XRP ledger processes over 20 transactions per second, handling over half a million payments and money transfers daily. Besides regular transactions, each payment involves at least two transactions on the ledger. The system's maximum capacity is significantly higher, but this is its current performance. The integration of automated market makers has increased liquid funds for the system. Hence, RippleNet is a fully operational and highly active money-transfer system today.
Given the speed of transactions and low fees, it's not surprising to see Ripple gaining traction. It also handles international money transfers with minimal hassle, which is particularly helpful for someone like me with side projects in the U.K. and Lithuania. Ripple resolves most of the issues associated with slow and expensive overseas payments, making functional XRP tokens valuable in a practical sense.
The Digital Future
Court cases are always unpredictable, but the Ripple side has fared better in this legal standoff with the SEC.
Regardless of the ultimate outcome, overcoming the legal hurdle can be a significant positive for XRP's long-term value. Investors dislike uncertainty, especially in volatile and novel markets like cryptocurrencies. Removing the legal cloud should help XRP's undervalued token gain recognition.
Whether this clarity comes in time for XRP to tag along with the next Bitcoin rally isn't crucial. Buying XRP tokens for roughly $0.70 each in 2024 could result in market-beating gains over the next decade and beyond. I own more XRP than Bitcoin, as the token appears undervalued considering its thriving and expanding payment service.
Based on the text, here are two sentences that contain the words 'investing', 'finance', and 'money':
- Given the speed of transactions and low fees offered by RippleNet, some investors might see an opportunity for profit in investing in XRP, as they believe the token is undervalued considering the potential of its payment service.
- Despite the legal uncertainty surrounding XRP, some finance experts suggest that long-term investors might find value in financing their portfolios with XRP, as they believe in the potential of RippleNet to disrupt the international money transfer market.
