XRP, the seventh largest cryptocurrency by market cap, has not matched the performance of the other top cryptocurrencies. Despite the prolonged underperformance and skepticism from many in the community, some analysts and experts believe the digital asset has a bright future, and can still outperform the rest of the market.
Current Price Performance and Community Concerns
According to data from CoinMarketCap, XRP currently trades around $0.51, a notable decline from its position a month ago. This underwhelming performance has caused concern within the cryptocurrency community.
Over the past nine months, the price has fluctuated between $0.4 and $0.7, with the last breach of the $1 mark occurring three years prior. Notably, it has consistently remained within the same price range observed in mid-2018.
Read Also: Wall Street Veteran: XRP Price Dip Offers Investors Buying Opportunity
XRP as a World Reserve Currency?
Despite the recent price slump, some industry figures remain optimistic about XRP’s future. Wall Street analyst Linda Jones recently highlighted the speculative scenario of XRP potentially becoming a global reserve currency.
This theory, which has gained traction within the XRP community, originates from a 2017 blog post by Ripple, where it declared its unwavering commitment to establishing XRP as the world’s reserve digital currency.
Jones emphasizes a crucial trend: the potential shift away from the US dollar as the primary reserve currency for certain nations. Notably, members of the BRICS economic bloc (Brazil, Russia, India, China, and South Africa) are increasingly exploring alternative options, including asset-backed reserves like gold.
The XRP community believes that XRP’s characteristics make it a suitable candidate for this role, citing statements by Ripple executives like CTO David Schwartz. During a public online discussion last year, Schwartz acknowledged the desire for a decentralized reserve currency not controlled by any single nation. He suggested that cryptocurrencies like XRP could potentially fulfill this function.
Analyst’s Perspective: Potential for Growth Post-Lawsuit and Regulation
Considering the current low price of XRP and the nearing conclusion of the ongoing lawsuit between Ripple and the SEC, Jones suggests that this might be the last opportunity to acquire XRP at such a value.
Additionally, she anticipates the passing of stablecoin legislation in 2024, potentially followed by broader cryptocurrency regulations in 2025. These developments, in her opinion, could pave the way for significant growth in the XRP market.
Counterarguments and a Focus on Project Development
However, not everyone shares Jones’ optimism. XRP enthusiast Rob Licker criticizes the notion of XRP becoming a global reserve currency as unrealistic and outdated. He argues that such narratives create unrealistic expectations and encourage the belief that simply holding XRP will lead to significant wealth accumulation through a sudden price increase.
Licker believes that the actual value of XRP will be more heavily influenced by the development and success of projects actively building on the XRP ledger. Examples include Anodos Finance, HelvetX Labs, Baysed Labs, xSPECTAR, and Flare Networks.
These projects contribute to the overall utility and ecosystem growth of XRP, potentially leading to a more organic and sustainable price increase in the long run.
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Read Also: Wall Street Veteran States the Big Thing Coming For XRP
The future trajectory of XRP remains uncertain. While some believe in its potential as a global reserve currency, others advocate focusing on the development of real-world applications within the XRP ecosystem.
Ultimately, the success of XRP will depend on its ability to overcome regulatory hurdles, gain wider adoption, and demonstrate tangible utility within the evolving financial landscape.
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