Will Ripple Rise Back After the Dip?
Ripple's XRP, one of the largest cryptocurrencies based on market cap, over the years has shown great potential of being one of the very best. Currently scalable and efficient, the project has somehow managed to fall behind expectations.
Launched a few years after Bitcoin, Ripple was, surprisingly, one of the very few projects to not be built on Bitcoin's protocol at that time. It was designed to offer users a unique opportunity to send and receive assets in a fast, convenient, seamless, and secure manner. Unique, Ripple's XRP leverages a unique consensus mechanism that further ensures that the network is scalable and super-fast, a feature only a few projects can boast of.
It is capable of processing over a thousand transactions per second [TPS], a feat neither Bitcoin nor Ethereum, the two largest crypto projects can attain, at least for now.
Like a few of the other projects, 2021 started as a good year for the top project with XRP reaching and exceeding its previously existing all-time high [ATH]. At one point, the price of XRP rose close to the $2 mark, giving coin holders hope of a subsequent surge in price. While the fad lasted for a time, the coin returned to normal and at the time of writing, it currently sits at $0.87.
Ordinarily, the Ripple network is an advanced crypto project that seeks to offer solutions to all of the problems facing Bitcoin and cryptocurrencies at large. Whilst growing, a recent Securities and Exchange Commission [SEC] inquiry into the network, as reported by various news outlets, delayed the growth of the promising network.
According to the SEC, Ripple's XRP was security and like all others should be duly registered with the commission. The Ripple's team, on the other hand, argued tirelessly against that motion, stating equivocally that the network is a digital currency like Bitcoin and other altcoins.
This lawsuit and accompanying bad press took a toll on the growth of the network, devaluing its price.
The Price Rise
After a series of talks and court hearings, it was announced by a court in the United States that Ripple, as rightly said, was in fact, not security.
This news quickly affected XRP’s price with the coin rising by over 15% hours after the announcement was made. Further court hearings also helped put the crypto back on track.
With the court cases now a thing of the past, at least for now, XRP has somehow not shown great potential. Whilst most experts have argued that the current crypto market dip could be the cause of Ripple's inability to grow, others argue against it. A few projects like Cardano and MATIC, albeit affected by the current dip have shown resistance, way more than Ripple has ever had.
This has made investors and XRP holders skeptical about the future of this project, some suggesting that the coin may never get past the $5 mark.
While arguments have been made by XRP enthusiasts, one cannot simply overlook the project’s bad performance over the years.