The future trend of XRP prediction, SEC case gradually becomes clear

Introduction

XRP It is a cryptocurrency token dedicated to international remittances, excluding various stablecoins and the native tokens of exchanges, XRP, as an old cryptocurrency, has long occupied an important position in the crypto market.

About XRP

XRP is a cryptocurrency primarily developed by the US fintech company Ripple Labs Inc, serving as a bridge currency for international fund transfers for financial institutions.

Due to the high cost and time required for traditional international remittances through SWIFT, this model is not suitable for small international remittances. In many cases, funds cannot be transferred without the involvement of other banks, known as ‘correspondent banks’. The method of transferring funds through multiple banks not only incurs fees and time, but is also often affected by exchange rate fluctuations.

The XRP network allows financial institutions to directly remit cross-border payments to other banks without going through intermediary banks, effectively reducing the time and cost required for international remittances.

The innovation of XRP

XRP does not use blockchain, it provides the distributed ledger technology of XRP Ledger and an authorization algorithm called Ripple Protocol Consensus Algorithm, RPCA.

XRP only requires 80% of transaction validators to approve transactions without mining, and blocks can be added to the XRP ledger in a short period of time, making XRP processing and sending transactions very fast, meeting the need to process a large number of transactions in a short period of time.

The list of validators for XRP is UNL, which was initially selected by Ripple financial institutions. However, in order to pursue the characteristics and philosophy of decentralization, it is currently gradually being replaced by validators selected by third parties.

XRP was launched in 2012 and is one of the earliest types of cryptocurrencies, with a total supply of 100 billion XRP. Due to Ripple owning more than half of the total supply of XRP, there is a significant centralization risk, especially in light of the series of centralization events and controversies faced by the crypto market in 2022. For the first time, Ripple’s XRP holdings fell below 50% of the total supply.

SEC case review

In 2020, the U.S. SEC determined that XRP is a security and sued Ripple’s utives for raising funds by selling XRP without registration.

This argument was also commonly used by the SEC to sue crypto companies in the future, but XRP is quite well-known and widely used among the types of cryptocurrencies that have been sued.

Whether XRP is a security is not only important for Ripple, but also for the entire cryptocurrency industry.

Due to Ripple being one of the earliest mainstream cryptocurrencies targeted by the SEC, combined with the prolonged progress of the whole case, it has attracted a lot of attention.

Therefore, if the court determines that XRP is a security, it means that the SEC’s qualification of more cryptocurrencies in the future will follow precedent. This will enable the SEC to achieve its goals more smoothly and will have a significant impact on the cryptocurrency industry.

Case Progress and Chain Reaction

As of July 14, 2023, after a three-year legal battle between Ripple Labs and the SEC, the court ruled that XRP is not a security. After the announcement, the price of XRP token surged over 15% in a short period of time, with a 92.89% increase within 24 hours, and the token price surpassed $0.9. The victory in this lawsuit may become an important turning point in cryptocurrency regulation in the future.

Meanwhile, the sharp rise of XRP has driven the overall increase in the entire cryptocurrency market. The market scope involved in this lawsuit is already very large. In addition, the SEC has sued multiple cryptocurrency companies and requested to classify multiple cryptocurrencies as securities. This precedent is of great significance and may even be the beginning of the end of the current bear market.

XRP future trend prediction

With the verdict announced, XRP rose from $0.5 to $0.9, an increase of over 90%, and then fell to around $0.7, with a significant pullback.

Currently, the subsequent rise of XRP lacks support and is likely to continue to fall. Although this ruling is a good piece of news, there is no obvious off-market capital injection into the cryptocurrency market, and more of a rotation of funds within the market.

The market share of BTC and ETH is still declining, and the trading volume is relatively low. The category of altcoins represented by XRP has improved. In this case, the cryptocurrency market may still be unable to truly emerge from the bear market in 2023, and the bottoming market may continue.

If the entire cryptocurrency market cannot return to a bullish trend, XRP’s future will ultimately show a downward trend, as evidenced by its recent continuous decline in price. Although with the judgment coming, many cryptocurrency companies have begun to show support and solidarity for XRP, and its benchmark resources have also suddenly increased, its future trend is still not optimistic.

Conclusion

The above is the relevant introduction and explanation about XRP itself and its future trend. Currently, the overall cryptocurrency market may usher in a good growth wave with the end of the Ripple case, and it is worth keeping a close eye on. Please note that XRP should not be translated and should be kept in its original form.