Ripple Labs’ cryptocurrency XRP has experienced a remarkable recovery recently. Since March 2023, its market capitalization has increased by another $6 billion, making it the sixth most popular cryptocurrency worldwide. In addition, the price of XRP has increased by more than 37% in the past month, reaching a peak of $0.5850 last month. However, what is driving this expansion, and what does the XRP future hold? We look at these two important questions to help novices who are interested in purchasing Ripple (XRP) in the future.
XRP: What is it?
Ripple Labs developed the digital currency and payment protocol known as XRP in 2012. It is made to make it easier to pay across borders by making transactions that are quick and cheap. The XRP Ledger is a distributed ledger system that is managed by an independent network of validators.
Market Cap for XRP Soars: What’s Driving It?
During the first quarter of 2023, XRP’s market capitalization has been rising, reaching a peak of $26.93 billion in March. Increasing investor confidence that Ripple Labs will prevail in its legal dispute with the US Securities and Exchange Commission (SEC) is one of the main factors driving the growth of XRP.
Ripple Labs has been fighting the Securities and Exchange Commission (SEC) since 2020 over allegations that it offered its coins to the public without registering them as securities.
However, Ripple Labs claimed that it was unaware that XRP was regarded as a security when it pleaded not guilty. The organization likewise noticed that it arrived at a settlement with the Division of Equity in 2015, officially perceiving XRP as crypto and not a security.
Second, the Wave network has taken extraordinary steps in extending its compass and organizations. To make it possible for XRP to be used in cross-border payments, the network has formed alliances with payment processors and financial institutions. Demand for XRP has grown, and its market capitalization has grown as a result.
Moreover, the interest in XRP as a venture vehicle is developing. XRP is viewed as a haven asset and inflation hedge by many investors, adding diversification to their portfolios.
What is XRP’s future like?
The outcome of the SEC lawsuit will be the first significant factor determining the future of XRP. It could be a turning point in cryptocurrency history if the company prevails. Additionally, it will result in an expansion of the XRP market capitalization.
Having said that, XRP has a bright future ahead of it because many indicators point to continued growth and expansion.
Demand for XRP is anticipated to rise as the Ripple network expands its reach and partnerships.
More than 200 financial institutions and payment service providers are currently a part of the network, and this number is expected to rise in the coming years.
Therefore, as more people use cryptocurrencies for cross-border payments, demand for XRP is expected to rise significantly.
Conclusion:
Investors’ confidence that Ripple Labs will prevail in its legal battle with the SEC is to blame for the recent growth of XRP. The use of cryptocurrencies could grow. However, the cryptocurrency market may be affected if Ripple Labs loses. Investors should keep an eye on the court case involving Ripple Labs and the cryptocurrency industry’s regulatory developments.