The post Why Is XRP Dropping? Is It Still Worth Holding XRP Amid Market Fluctuations? appeared first on Coinpedia Fintech News
Lark Dewis, an entrepreneur and crypto investor, has recently taken to X to share his views on whether XRP is still worth it. He has touched on the SEC case and its impact, recent developments, and how high XRP can go. Let’s dive deeper to know more.
XRP has lately surprised the community with its captivating gains. It is up by over an impressive 35% in the past week, currently trading at $2.29. In a couple of weeks, it broke through the one-dollar barrier and had an impressive run to almost three dollars, which is an impressive three-fold increase, Dewis noted.
However, is it still worth holding? Or is it just the altcoin season effect? Dewis has delved deeper, considering the various factors leading to its ups and downs.
SEC Case and Its Impact
The SEC filed a lawsuit against Ripple Labs in 2020, claiming XRP was sold as an unregistered security, leading to price plummeting and delisting. However, a court ruling in July 2023 clarified XRP’s status as a security on public exchanges.
Moreover, lately there have been a lot of recent developments for XRP. He cited a MessariCrypto Report titled “State of XRP Ledger Q3 2024,” which provides an overview of the project’s progress. Lark shared the key insights form the report which included:
Key Insights:
Ripple and the XRP community plan to introduce native smart contracts on the XRP Ledger (XRPL) through an XLS proposal, enhancing the platform’s functionality, allowing for the creation of decentralized applications, and expanding its use cases.
Secondly, he noted that the average daily transactions on the XRP Ledger have surged by 94% quarter-over-quarter (QoQ), reaching 1.7 million, while the number of new addresses grew by 10% to 105,000, which indicates growing adoption and interest.
In August, Ripple announced that its USD-pegged stablecoin, RLUSD, entered private beta testing on both the XRP Ledger and Ethereum. At the time of writing, it is waiting for approval from NYDFS. Its launch will enhance the utility and adoption of the XRP Ledger and can be a bullish catalyst.
A native lending protocol is being developed to enable users to lend and borrow supported assets like XRP, stablecoins, wrapped Bitcoin, and wrapped Ethereum using single-asset vaults.
How High Can XRP Go?
He noted that XRP’s current market cap is at $135 billion and 1000% returns at this stage is highly unlikely. While, a 10x increase would be a very long shot that would take the market cap to $1.5 trillion. He noted that the 4.236 Fib level is around $7.3, which is approximately a 3x. However, there is no certainty this will be reached. However, with Gensler out of the picture and a pro-crypto president taking office, there are chances of an upside. The RLUSD approval could be another tailwind, he noted.
Positive Developments for XRP
In a recent development, Trump has nominated venture capitalist David Sacks as the White House AI & Crypto Czar, who is known for favoring Ripple in the long-running US SEC lawsuit. Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty believe that Sacks will push President Trump’s crypto and AI pro-innovation plans forward. It will also bring upside momentum to the cryptocurrencies he supports, including XRP and ZRX. Notably, XRP Price Is Up 400% Since Trump Won the Election.
Impact Of SEC Appeal
While Trump’s moves signal a pro-crypto stance, the prospects of the SEC pursuing the appeal will likely impact XRP demand. The SEC must file its appeal-related opening brief by January 15, 2025, before Gensler departs. Chair Gensler’s final push against crypto firms and recent promotions suggest the agency will file its opening brief. However, Paul Atkins could withdraw the appeal on Day 1, setting the Programmatic Sales of XRP ruling as a pivotal legal precedent for the US crypto space.
