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Ripple’s CEO is optimistic about XRP’s future. Should we wait for the coin’s return to the top 3 cryptocurrencies this year?

Tanja Nechet

News editor

Jan 20, 2023 at 06:32

In 2018, the Ripple (XRP) cryptocurrency was ranked second after Bitcoin. However, a lawsuit by the Securities and Exchange Commission (SEC) in 2020 led to a decline in the price, which was exacerbated by a series of high-profile crashes: Terra, Three Arrows Capital, Celsius Network, and FTX.

After a difficult year for the entire crypto market in 2022, in 2023 a noticeable recovery began. Will XRP be able to regain its leading position this year?

The Ripple management believes in a bright future, although not everyone sees the same project’s prospects.

Should we expect XRP to rise soon to $10?

The market took this sentiment from the executives with relative warmth. The XRP price has risen slightly and, as of January 20, stands at $0.390818. That’s 89.83% below the record $3.84 value recorded in early 2018. 

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The 24-hour trading volume is $1,039,447,451 (down almost 30% from the day before).  XRP had a similar experience at the time of the FTX crash, when daily trading volume dropped by a third. After that, indicators stabilized a bit, as most altcoins tend to do. In this case, the decline may have occurred on the background of news that the U.S. Department of Justice (DoJ) shut down the crypto exchange Bitzlato, suspected of money laundering. In this case, the daily trading volumes may rise to previous values (as happened after the FTX crash). 

Either demand has fallen. Or traders don’t trade coins yet, waiting for further price movement.

Ripple CEO Brad Garlinghouse is optimistic about XRP’s prospects this year. Ripple is a provider of crypto solutions for businesses. Garlinghouse told CNBC at the World Economic Forum in Davos, that the United States Securities and Exchange Commission (SEC) lawsuit against his company will be resolved in the first half of 2023.

“Optimistically, this will certainly be resolved in 2023, in maybe the first half. I feel very good about where we are relative to the law and the facts,” Ripple’s CEO said.

Garlinghouse added that he sees positivity in crypto this year.

“I honestly think it’s healthy seeing the change in how crypto showed up this year. Folks are focusing on utility and how these technologies solve real problems – the only way the industry will move forward,” he tweeted.

The a01k.Crypto team, which provides marketing and financial support to projects, as well as expert and technical support, considers XRP a rather questionable tool for investment.

“In general, XRP in the crypto community is considered a coin for “hamsters” (in crypto slang they are beginners who do not really understand much), because the principles of its organization violate the idea of cryptocurrency and blockchain, namely decentralization, as its fate and rate actually depend on the management company. 

Why do hamsters look toward XRP? Because it is much cheaper than BTC, there is a huge potential for growth. But capitalization (the price of assets multiplied by the total quantity of coins) is the main value indicator on the market. And it is capitalization that is the main constraint in those “X’s”. The CoinMarketCap list of coins is lined up by capitalization.

You can make money on XRP by speculating on the exchange rate. But it’s hard to predict anything here because of the highly manipulable nature and there is not much of a reason for growth at the moment, so it looks more like a roulette/casino game. And there are not a few such coins in the top 100. They have no value and no development as a product/company. They just exist, feed expectations, and manipulate information.”

Senior vice president at Ripple, Brooks Entwistle, assured that “Ripple is totally focused on building around real utility and going higher in 2023!” (here are more details).

The co-founder of YouTube channel Black Swan Capitalist, Versan Aljarrah, also considers, that Ripple is already working with the traditional banking system and XRP will serve the global economy.

According to Australian Financial Review, cryptocurrency XRP for cross-border payments has dominated trading volumes on Australian leading digital exchanges as international payments become a major use in Australian digital asset markets. In the 24 hours to January 18, the token accounted for 82% of all cash volume on the Independent Reserve exchange and 62% of all cash volume on Melbourne-based BTC Markets.

BTC Markets CEO Caroline Bowler said Ripple dominates trading volumes because BTC Markets is its on-demand liquidity partner (ODL)On-Demand Liquidity (ODL) providing instant and inexpensive settlements without the need to hold pre-funded capital in the destination market..

Ripple’s cryptocurrency volumes in Australia are still small compared to exchanges like Binance and Coinbase (only 1%) with Bitcoin and Ethereum leading there.

SEC vs Ripple

In 2020, the U.S. Securities and Exchange Commission initiated a lawsuit against Ripple, alleging that the company and its executives illegally traded the cryptocurrency XRP because they did not register it as a security.

In December 2022, Ripple and the SEC filed their final briefs asking for summary judgment in the case, respectively accusing each other of violating the law.

If the court finds XRP to be a security, Ripple’s token could face serious restrictions. These could include investor disclosure requirements, transparency, etc. Other cryptocurrencies and blockchain projects could be classified as securities.

What is Ripple (XRP)?

XRP is a cryptocurrency launched in 2012 and created for payments. It aims to become a currency bridge between financial institutions using different currencies. It achieves this by moving transactions to an open infrastructure that allows payments and money transfers to be settled in real-time. XRP is often compared to the SWIFT payment system.

Ripple was founded in 2012 (called Ripple Labs until 2015). In the same year, an XRP network called XRP Ledger (XRPL) was created, with XRP as the native currency. In 2020, the XRPL Foundation, a non-profit organization, was created to accelerate the development and adoption of the network. Ripple works in 50+ countries.

At the beginning of 2018, XRP was the second largest cryptocurrency. It had a market value of $130 billion. Since then, it has fallen sharply amid scrutiny from U.S. regulators and the decline of bitcoin and other digital currencies. According to CoinMarketCap, XRP now has a market capitalization of about $19 billion.

Now, XRP ranks #6 on CoinMarketCap with a real market capitalization of $19,819,683,781. There are 50,713,323,547 XRPs in circulation with a maximum supply of 100,000,000,000 coins.

As for Ripple’s real use, popular YouTube crypto educators Crypto Busy give such examples:

  • XRP is used as an intermediate currency in cross-border transactions. It allows the instant conversion of one currency to another without the involvement of a centralized intermediary. By doing so, businesses and individuals will be able to transfer money internationally more efficiently and at a lower cost. 
  • Several banks and financial institutions are already using Ripple’s XRP technology for cross-border payments, and it is widely used outside the United States. 
  • XRP is useful not only for cross-border payments, but also for micropayments, e-commerce, banking, P2P lending, insurance, supply chains, and smart contracts. 

Why are XRP and Ripple not the same?

Ripple XRP
WHAT IS IT?
A technology company that provides the most efficient solutions for sending money globally. An independent digital asset. The XRP Ledger is the open source blockchain technology behind it.

HOW IS ONE RELATED TO EACH OTHER?

Ripple is a software company that uses XRP and the XRP Ledger in its product, xRapid. It does not control the digital asset or technology. Ripple does own 60 billion XRP (approximately 55 billion is locked up in escrow). The XRP Ledger cannot be owned by any single entity – it exists independent of any one person or business, including Ripple.
WHO CONTROLS WHETHER IT SUCCEEDS OR FAILS?
The board, founders, and employees of Ripple.

The community who deal in XRP, use the technology or generally contribute to XRP or the XRP Ledger.

WHO USES IT?

Financial institutions use Ripple’s products. Anyone can use XRP, build on the XRP Ledger or list XRP on their exchange.

WHO OWNS IT?

The founders, investors and employees who hold stock in Ripple. Anyone can own XRP.

Where to buy Ripple (XRP)?

Since XRP is a long-living project, this cryptocurrency can be purchased on most exchanges:

  • Binance 
  • Bithumb
  • Bybit
  • Kraken 
  • OKX
  • PancakeSwap
  • Huobi 
  • Bitso
  • LBank
  • Bitfinex 
  • Crypto.com

Bottom line

XRP could rise in price if a court verdict in the SEC’s case against Ripple is in favor of the latter. Also, if interesting new projects will appear and this cryptocurrency will be used in more transactions.

XRP could fall in price if the decision will be in favor of the SEC. In addition, the Ripple project has been on the market for a long enough time but has not yet shown any big development or application in large new projects.

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