In the ever-evolving landscape of cryptocurrency, XRP has recently captured the attention of investors with its significant price surge. Entrepreneur and crypto investor Lark Dewis has voiced his opinions on XRP, discussing the ongoing SEC case, recent advancements, and the potential future of this digital asset. Let’s delve deeper into his insights and understand the factors influencing XRP’s trajectory.
The SEC Case and Its Impact
The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in 2020, accusing it of selling XRP as an unregistered security. This legal battle led to a considerable drop in XRP’s price and its subsequent delisting from several exchanges. However, a pivotal court ruling in July 2023 provided clarity by defining XRP’s status as a non-security on public exchanges.
In recent months, XRP has experienced a series of positive developments. Lark Dewis highlights a comprehensive report from MessariCrypto titled “State of XRP Ledger Q3 2024,” which outlines the progress and future plans for XRP. Here are some of the key insights:
Key Insights
- Ripple and the XRP community are working on introducing native smart contracts on the XRP Ledger (XRPL) through an XLS proposal. This initiative aims to enhance the platform’s functionality, enabling the creation of decentralized applications and broadening its use cases.
- The average daily transactions on the XRP Ledger have increased by an impressive 94% quarter-over-quarter (QoQ), reaching 1.7 million. Additionally, the number of new addresses has grown by 10% to 105,000, reflecting growing adoption and interest.
- Ripple announced the private beta testing of its USD-pegged stablecoin, RLUSD, on both the XRP Ledger and Ethereum. Awaiting approval from the New York Department of Financial Services (NYDFS), this stablecoin launch could significantly boost the utility and adoption of the XRP Ledger.
- A native lending protocol is under development to facilitate users in lending and borrowing assets such as XRP, stablecoins, wrapped Bitcoin, and wrapped Ethereum using single-asset vaults.
Potential Growth: How High Can XRP Go?
Lark Dewis examines the potential for XRP’s growth, noting its current market cap at $135 billion. While a 1000% return may be unrealistic, a 10x increase, elevating the market cap to $1.5 trillion, remains a long shot. The 4.236 Fibonacci level is around $7.3, suggesting a possible 3x increase, but reaching this target lacks certainty.
Nonetheless, certain factors could drive XRP’s price higher. The exit of SEC Chair Gary Gensler and the possibility of a pro-crypto president entering office may create an environment conducive to XRP’s growth. Additionally, the approval of RLUSD could serve as another catalyst for positive momentum.
Positive Developments for XRP
In a notable development, former President Trump has appointed venture capitalist David Sacks as the White House AI & Crypto Czar. Sacks, known for his support of Ripple in its legal battle with the SEC, is expected to advance President Trump’s pro-innovation plans for crypto and AI. This appointment is likely to bring upward momentum to the cryptocurrencies Sacks endorses, including XRP and ZRX.
Moreover, XRP has witnessed a remarkable 400% price increase since Trump’s election victory, signaling strong investor confidence in its future prospects.
Impact of SEC Appeal
While Trump’s appointments signal a favorable stance towards cryptocurrency, the potential for the SEC to pursue an appeal remains a concern for XRP investors. The SEC must file its appeal-related opening brief by January 15, 2025, prior to Gensler’s departure. Chair Gensler’s final efforts against crypto firms suggest that the agency will proceed with the appeal. However, Paul Atkins could choose to withdraw the appeal on the first day, setting a significant legal precedent for the US crypto landscape.
