Ripple-affiliated XRP is back in the limelight after a roller coaster ride. From a yearly high of $0.71 to a low of $0.41, the altcoin has generated quite a buzz. Despite the current market volatility, market experts pin their hope on the upcoming events in the XRPL ecosystem and the broader regulatory development. One topic of discussion is whether the altcoin would replicate the dramatic rise of Ethereum after it achieved regulatory clarity.
Market observers believed achieving true regulatory clarity would be the pivotal moment for XRP. Citing Ethereum’s meteoric rise from $7 to $1500 within a year after securing regulatory status. The altcoin’s newly secured clarity positions it for substantial growth. Moreover, the XRP Ledger is set to integrate a US-backed stablecoin, RLUSD.
Historically, networks that incorporate stablecoin options saw massive gains in their native assets. The analyst cited the example of Binance Coin [BNB] which skyrocketed by a whopping 3,100% following its stablecoin introduction. This integration has benefitted traders by moving in and out of the assets on that network seamlessly while maintaining stability against fiat currencies, enhancing its further appeal.
XRP-Based ETP and CME Price Index
Adding to the momentum is the recent announcement of an XRP-based Exchange Traded Product [ETP]. Even though the full implications of this ETP remain to be seen, the fund is physically backed by XRP and is priced at $12 per unit. This development could lead to an influx of institutional investors, adding to the token’s market credibility and liquidity.
Just a day earlier, the Chicago Mercantile Exchange [CME] launched an official price index for XRP. aligning the altcoin with other commodities like oil. This indicates that once the SEC lawsuit concludes, the Ripple-backed token will be traded as a commodity rather than a security, paving the way for new markets and investors to enter.
However, the most significant catalyst would be the outcome of the SEC lawsuit against Ripple. So far the blockchain firm has emerged clean on legal, congressional, regulatory, and criminal fronts. Traders and investors would be closely monitoring the events.
The expert then observed that the cryptocurrency market has witnessed an inflated price action in the 6 to 18 months after Bitcoin halving events. The effect then spreads to the altcoin space leading to rallies, a trend that could benefit XRP, further amplified by its newfound regulatory clarity.
Another strategic development was Bitstamp’s announcement, a key Ripple “On Demand Liquidity” [ODL] provider, which was recently acquired by Robinhood. This acquisition will see Robinhood support the altcoin as a trading pair with various national currencies, boosting XRP’s accessibility to retail investors.
Overall, all these developments portray a promising outlook for XRP’s future, positioning it for significant gains and potentially revolutionizing its role in the cryptocurrency market.
