|Ripple (XRP) Price Prediction : Should the cryptocurrency go up again?|
Ripple is the company behind XRP, the sixth-largest cryptocurrency by market cap, which accounts for more than $50 billion according to CoinMarketCap. Apart from XRP, Ripple is also known as RippleNet, its payment settlement system designed to allow financial institutions to transfer money and assets across borders faster and with lower transaction fees.
Ripple has gained recognition among major banks such as Bank of America, Santander and American Express, which use the network as a transaction platform. Meanwhile, XRP can be used as an investment, exchange for other cryptocurrencies, or as a way to finance transactions on the Ripple network.
In particular, there are certain features that set Ripple apart from other encryption leaders, such as Bitcoin (BTC) and Ethereum (ET). First, Ripple does not use blockchain to provide consensus. Instead, it uses a hash tree, a persistent data structure that can be used to implement sets and maps, to summarize data and compare it across servers by calling a list of unique nodes to verify transactions.
The system speeds up transactions, which for Ripple is almost instantaneous – between four and five seconds – much faster than sending money through traditional financial institutions, or even via Bitcoin, which can take up to nine minutes to verify, according to YCharts. In addition, Ripple transactions cost very low, only 0.00001 XRP, a fraction of a penny at the current rate.
Second, Ripple is non-minable and is a "pre-mined" cryptocurrency as all 100 billion tokens have been created and gradually released to the market. This feature makes Ripple stand out as a "green" cryptocurrency, while its rivals Bitcoin and Ethereum require significant energy consumption for mining, which has been heavily criticized.
"Energy consumption for mining BTC and ETH is a waste and there is no incentive to be responsible for a carbon footprint," said Brad Garlinghouse, CEO of Ripple in a tweet.
In 2021, the cryptocurrency XRP founded by Ripple is struggling on an unstable journey. After starting the year relatively low at $0.21936, XRP peaked at $1.936370 on April 14, enjoying an astonishing 224% growth in the first two weeks of the month.
However, a turbulent period ensued, with the cryptocurrency dropping 71% to a July low of $0.51601. Since then, the asset has recovered some of the losses, currently trading at $1.11650, with a 445% YTD return. In comparison, its most established crypto counterpart, Bitcoin, has made just 61% this year, suggesting that XRP is outperforming its broader market.
Ripple (XRP) : What Drives Prices?
Cryptocurrency Market Sentiment
Cryptocurrencies are volatile assets and, for Ripple, there are several competitive factors at play, shaping their price movements. One of them is the sentiment of the broader cryptographic market, which can either excite or dampen investor enthusiasm.
In the chart below we can see XRP prices for Bitcoin, Ethereum and Ripple expressed in US Dollars. A limited correlation can be observed: prices rise and fall in approximately the same period. For example, between November 2020 and May 2021, all cryptocurrencies rose, followed by a change in sentiment seeing cryptocurrencies fall between May and July. Since then, the trend has reversed, with the encryption market regaining momentum.
Partnerships with Banks and Other Financial Institutions
As with any asset, there are many individual factors that affect the price. For Ripple, which specializes in transactions for influential institutions, clients and partners, this is a huge boost as it gives them greater recognition in the world of traditional finance.
When American Express introduced blockchain-enabled cross-border payments using the Ripple network in 2017, the initial market reaction to XRP was muted. What followed, however, was an extraordinary rise that pushed prices 10 times higher (1015%) between December 2017 and January 2018.
Today, the Ripple (XRP) network is used by 36 institutions worldwide, including Santander, American Express, Bank of America, Rakbank, Transfer Go, and many more.
|Ripple (XRP) Networks|
On the downside, regulatory restrictions on cryptocurrencies may pose a risk to the price of XRP and dampen investor enthusiasm.
In May 2021, the world's second largest economy, China, banned financial institutions and payment companies from providing services related to cryptocurrency transactions. The regulatory move pushed the cryptocurrency market down, including XRP, which fell 33.43% on the day of the announcement.
It is possible that other financial regulators will tighten the rules regarding cryptocurrencies in the future. The UK's Financial Conduct Authority, for example, recently threatened to ban Binance, a global cryptocurrency exchange platform, and launched a marketing campaign warning of the risks associated with buying and selling cryptocurrencies.
SEC Case vs Ripple
In late 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple co-founder Christian Larsen and CEO Bradley Garlinghouse, alleging that the pair raised funds through the sale of XRP in offering unlisted securities to investors with limited information. about their business.
The US watchdog argued that the two men failed to register XRP as a bond, which would require significant commercial disclosure of its operations and financial condition to ensure investors make the right decisions.
Meanwhile, the SEC claims that Larsen and Garlinghouse privately made an estimated $600 million in profit from the sale of XRP, ignoring legal advice that cryptocurrencies can be considered investments.
The case saw the price of XRP drop 13.22% on the day of the announcement and 41.73% to make your eyes water the next day, hitting an intraday low of $0.21261. Coinbase, the largest cryptocurrency exchange, suspended the XRP token on the back of the box.
Ripple responded by saying that XRP is a virtual currency outside of the SEC's jurisdiction and Ripple has never signed any investment agreements with any XRP holders. After constant back and forth between Ripple Labs, the SEC and the courts, the legal battle is still ongoing as the courts have requested SEC internal documents to explain the overall view on encryption's views. Meanwhile, the entire cryptography world is keeping an eye on the process as it will set a precedent for future industry regulation.
Estimated Price of XRP 2022
A prediction service based on Digital Coin's algorithm said XRP could hit $2.04 in a year, while another Wallet Investor forecasting firm set a target price of $1,632. Meanwhile, another forecasting firm, Long Forecast, sees XRP price trading between $0.76 and $0.96 in August 2022.
Estimated Price of XRP 2025
In the medium term, Digital Coin sees the price of XRP rise to $3.79 by 2025. Wallet Investor has a lower XRP forecast to hit $2,934 in January 2025, but both suggest a hike for the cryptocurrency. The Long Forecast again has a gloomy outlook, seeing the price trade between $0.23 and $0.29 in August 2025, well below the current level of $1.088.
Be aware that forecasting services often miscalculate. You should always do your own research before making any investment or trading decisions.
Remember that buying Ripple or selling cryptocurrencies should always be your own decision and should depend on your attitude to risk, your experience in the market, the distribution of your investment portfolio, and how comfortable you feel about losing money.
Ripple (XRP) : Biggest Supporter
According to a Forbes report, Chris Larsen, co-founder and former CEO of Ripple, owned more than 5.1 billion XRP in 2018, which equates to $5.5 billion at the current level of $1.08, in addition to a 17% stake in Ripple Labs. . Brad Garlinghouse, the current CEO, owns a 6.3% stake in the company and also owns a large number of tokens, which are not specified by Forbes.
Another key player to look out for is Ripple's second co-founder, Jed McCaleb, who left the company in 2013. According to Forbes, McCaleb had donated his 2 billion XRP to a donor relief fund and the remaining 5.3 billion XRP as of February. 2016 is on a "custodial account at Ripple and assigned to it every month".
All sponsors believe that cryptocurrencies will play an important role in the future of payments.
Banks will use what is efficient and cheaper, and if you provide a better product at a better price, they will use it, said Brad Garlinhouse at the Stifel Financial 2018 Cross Sector Insight Conference.
Ripple (XRP) : Historical Stock Price Movements
The cryptocurrency XRP was launched almost ten years ago, in 2001, but it wasn't until 2017 when it started to attract investors' attention. So far in its history, XRP has made two major advances.
The first was in December 2017, when the cryptocurrency surged an astonishing 1266%, hitting an all-time high of $3,317 on January 4, 2018. However, the bull run was short-lived and XRP plunged 79% to $0.5627 on February 6. . XRP has yet to hit 2018 records.
Since then, the cryptocurrency has switched sides, trading around $0.27 for the next few years, before exploding in November 2020 and falling again due to the SEC case. XRP's most recent breakthrough came in April 2021, when the cryptocurrency surged 217%, peaking at $1.96695 on April 14.
The Biggest Daily Fluctuation in The Price of Ripple (XRP)
- One of the biggest changes in the price of XRP occurred on December 23, when the cryptocurrency lost 41% in just one day due to the announcement of the SEC lawsuit.
- Another bad day for XRP was to wipe out 33.43% of its value on May 19 after China stepped up its crackdown on cryptocurrencies.
- The price of XRP more than doubled (57%) on January 30, 2021, hitting a daily high of $0.51695 as it enjoyed its best daily performance.
- Another good day for cryptocurrencies was December 29 2017, when it more than doubled (52%), triggering the first major break to record levels.
Frequently Asked Questions
Will Ripple reach $5?
Digital Coin shows that XRP could reach $5.30 in seven years. However, you should note that the cryptocurrency market is highly volatile and long-term crypto price forecasts can be wrong due to several factors. We recommend that our traders do their own due diligence before making any commercial decisions.
How Much Will Ripple (XRP) Be Worth in 2025?
Digital Coin sees the price of XRP rising to $3.79 by 2025. Wallet Investor has a lower XRP forecast to hit $2,934 in January 2025, but both suggest a positive side for the cryptocurrency. The Long Forecast takes a darker view, seeing the price trade between $0.23 and $0.29 in August 2025, well below the current level of $1.088.
How much will XRP be worth in 10 years?
Cryptocurrencies are volatile assets and predicting their price presents several challenges. Digital Coin offers a long-term seven-year forecast, predicting the price of XRP to hit $5.3 in that time.
Thus a brief review of Nurul Huda ID about Ripple (XRP) price prediction hopefully it can add to your investment reference. Thank you for taking the time to read this article to the end. And our team always wishes you the best.
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