Wednesday, June 19, 2024
HomeCryptocurrencyRipple CEO Says Market Hasn't Rewarded XRP, Here's why

Ripple CEO Says Market Hasn’t Rewarded XRP, Here’s why

Brad Garlinghouse, CEO of Ripple, expressed surprise at the cryptocurrency market’s muted reaction to XRP’s clear regulatory advantage in the United States.

During a speech at the XRP Ledger Apex conference, Garlinghouse highlighted XRP’s distinct position compared to other major cryptocurrencies, particularly Ethereum (ETH).

Read Also: Ripple CEO: SEC Will Lose Against Ethereum (ETH) As They Lost Against XRP

XRP’s Regulatory Edge

Garlinghouse pinpointed XRP’s unique benefit: a definitive ruling from a U.S. court classifying it as a utility, not a security. This stands in stark contrast to Ethereum, the second-largest cryptocurrency by market capitalization.

The U.S. Securities and Exchange Commission (SEC) has previously issued warnings to the Ethereum Foundation, suggesting a potential lawsuit over its classification.

In March 2024, reports surfaced that the SEC sought financial documents related to the Ethereum Foundation’s interactions with U.S. firms, further fueling speculation of an impending security classification.

District Judge Analisa Torres’ landmark July 2023 ruling established XRP’s status as a non-security asset, providing Ripple and XRP holders with much-needed regulatory clarity.

Garlinghouse remarked, “I think it’s strange that XRP is in such a unique position, and the market hasn’t kind of rewarded that.” This sentiment has been echoed by prominent figures within the XRP community.

XRP’s Underperformance

Garlinghouse’s comments come amidst XRP’s underwhelming performance in the broader cryptocurrency market.

While the overall market experienced a bull run in 2024, with Bitcoin, BNB, Floki Inu, and Injective Protocol (INJ) reaching new all-time highs, XRP has remained stagnant. Currently trading around $0.495, XRP boasts a meager one-year gain.

Following the July 2023 court ruling, XRP initially surged by over 100%, briefly reaching $0.93. However, this momentum quickly dissipated, and the price has since fallen by nearly 50%.

This decline occurred despite major U.S. exchanges like Coinbase, Gemini, CryptoCom, and Kraken relisting XRP after the SEC lawsuit. Additionally, investment firms like Grayscale reintroduced XRP into their products.

Looking Forward

The question remains: why hasn’t XRP’s regulatory clarity translated into significant price appreciation? Several factors could be at play. The ongoing SEC lawsuit against Ripple, although focused on XRP sales practices and not the underlying technology, might still create uncertainty for some investors.

Additionally, the broader cryptocurrency market can be highly speculative, and factors beyond regulatory clarity can significantly influence price movements.

Read Also: Ripple CEO Points Up the Potential Benefits of Ripple Stablecoin 


While the market response to XRP’s distinct regulatory position has been muted, Ripple continues to focus on utility and adoption.

The company is actively forging partnerships with financial institutions worldwide to leverage XRP’s fast and cost-effective cross-border payment capabilities. Only time will tell how the market reacts to these developments and whether XRP’s regulatory advantage will ultimately translate into sustained price growth.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.

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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

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