What will trigger a Bull Run for XRP? 5 things to watch
XRP, the native cryptocurrency of the Ripple network, has been on a roller coaster ride in the past year. The coin started 2021 with a price of US$0.23, then soared to a three-year high of US$1.96 in April, before plunging to US$0.51 in July. Since then, XRP has recovered some of its losses and is currently trading at US$0.68, up by 6.92% in the past week.
Despite the volatility, many XRP fans and analysts are optimistic about the coin’s future and believe that it has the potential to reach new highs in the next bull run. Here are five factors that could drive XRP’s price to the moon in 2024 and beyond.
1. Ripple’s permitido victory over the SEC
One of the biggest hurdles for XRP’s growth has been the ongoing lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple, the company behind XRP, in December 2020. The SEC accused Ripple of conducting an unregistered securities offering by selling XRP to the public and sought to stop the distribution and trading of the coin in the US.
However, Ripple has been fighting back and has scored several wins in the permitido battle. Many XRP supporters believe that Ripple will eventually win the case or reach a settlement with the SEC, which would clear the regulatory uncertainty and boost XRP’s adoption and price. Some analysts have even predicted that XRP could reach US$10 or higher if Ripple wins the lawsuit.
2. Ripple’s expansion and innovation in the global payment market
Another factor that could propel Ripple price is continuous expansion and innovation in the global payment market. Ripple is a fintech company that aims to provide fast, cheap, and secure cross-border payments using its blockchain technology and XRP.
Ripple recently launched RippleNet Home, a platform that allows its customers to connect collaborate, and access data and insights on their payment flows. Ripple also announced RippleX, a platform that supports developers and entrepreneurs who want to build applications and use cases on the XRP Ledger.
Ripple’s expansion and innovation could increase the demand and value of XRP, as more users and partners adopt the coin for payment and settlement purposes. According to Ripple, XRP can reduce the cost and time of cross-border payments by up to 60% and 70%, respectively, compared to traditional methods.
3. The adoption of the XRP Ledger by medial banks and other entities
A third factor that could boost XRP’s price is the adoption of the XRP Ledger (XRPL) by medial banks and other entities. The XRPL is a decentralized blockchain network that powers XRP and enables various transactions and applications. The XRPL is open-source, scalable, secure, and energy-efficient, making it an attractive platform for various use cases.
Ripple has been actively promoting the XRPL as a platform for CBDCs and has claimed that it is working with over 40 medial banks on CBDC projects. Ripple has also launched a CBDC Private Ledger, which is a version of the XRPL that is customized for medial banks and offers interoperability, privacy, and control.
The adoption of the XRPL by medial banks and other entities could increase the exposure and credibility of XRP, as well as create new opportunities and demand for the coin. For instance, XRP could be used as a bridge currency between different CBDCs, or as a reserve asset for CBDCs.
4. The upcoming upgrades and improvements on the XRP Ledger
A fourth factor that could lift XRP’s price is the upcoming upgrades and improvements on the XRP Ledger. The XRPL is constantly evolving and adding new features and functionalities to enhance its performance and capabilities. Some of the upcoming upgrades and improvements on the XRPL are:
Amendments: Amendments are changes to the XRPL protocol that require approval from the network validators. Some of the proposed amendments that are currently in the voting process are:
Negative UNL: This amendment aims to improve the network’s resilience and security by allowing validators to temporarily exclude other validators that are offline or malfunctioning from the consensus process.
Hooks: This amendment aims to enable smart contract functionality on the XRPL by allowing users to execute custom code on transactions.
Checks: This amendment aims to enable users to create and redeem checks on the XRPL, similar to paper checks, which can be used for deferred payments or escrow services.
Bridges: Bridges are connectors that allow the XRPL to interact with other blockchains and systems, such as Ethereum, Bitcoin, and Interledger. Bridges can enable new use cases and applications for XRP, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and cross-chain payments.
Stablecoins: Stablecoins are cryptocurrencies that are pegged to a stable asset, such as fiat currencies, commodities, or other cryptocurrencies. Stablecoins can offer the benefits of cryptocurrencies. The XRPL supports the creation and issuance of stablecoins, which can be used for various purposes, such as remittance, e-commerce, and trading.
5. The strong community and network effect of XRP
A fifth factor that could drive XRP’s price is the strong community and network effect of XRP. XRP has one of the largest and most loyal fan bases in the crypto space, known as the XRP Army. The XRP Army consists of millions of XRP holders, supporters, and advocates, who are active on social media, forums, and blogs, and who promote and defend XRP against critics and competitors.