Markets
6 Reasons Why XRP Price Could Reach $1 This Summer (Opinion)
This article expresses the opinion of the author and should not be construed as financial advice.
Ripple’s XRP may be one of the most undervalued currencies in the blue-chip blockchain economy. This is due to XRP’s successful lawsuit against the SEC and its product development.
Could XRP Price Be Gearing Up For A Dream Bull Run In Q3?
XRP Price Prediction Very Bullish
XRP Price Analyst Egrag Crypto he raised the the ominous specter of an XRP price of $17 in the near future if Ripple bulls break above the key resistance at $1 and continue to rally towards XRP’s all-time high price of $3.50.
This is very bullish, but it is not new to cryptocurrency markets. In fact, similar performances are not uncommon in blockchain investing at all. They occur with shocking frequency in altcoin markets. Of course, it is worth noting that they occur much less often with large-cap cryptocurrencies that boast total market caps in the billions, such as XRP.
If Egrag XRP price prediction comes true, it would represent a 39.5x gain from Ripple’s average price on exchanges on Tuesday.
Ripple has done this kind of numbers before. For example, when it reached its all-time high of $3.50 in January 2018, it skyrocketed in less than 60 days, from the $0.15 level in November 2017.
This represented a gain of over 23 times from the November 2017 level for XRP in less than two months.
Here are six important factors that markets have been weighing in recent weeks:
1. Ripple Slips Towards Home Base in SEC Lawsuit?
In the fourth quarter of 2020, the U.S. Securities and Exchange Commission sued Ripple Labs, its founder, Chris Larsen, and its CEO, Brad Garlinghouse.
The SEC’s Ripple lawsuit has been ongoing for years, but finally showed signs of resolution last summer, when a series of legal victories followed one after another until late last year.
Ripple Labs could finally resolve the years-long SEC lawsuit soon.
A positive or even less damaging resolution could finally remove the excess that has characterized XRP in recent years and help it perform well, especially in bullish market conditions.
2. Development of the XRP Ledger (XRPL)
What the market doesn’t yet know, as evidenced by XRP’s price action against competitors like Solana, is that this bank-friendly cryptocurrency is about to break into the DeFi space with its own smart contract issuance layer, the XRP ledger.
According to a recent post by X from blockchain developer group EasyA, backed by a16z app founder Dominic Kwok, 134,000 developers are learning about Ledger on his company’s app. That’s an XRP army.
Meanwhile, cryptocurrency analyst X CryptoGeek reported“The XRP Ledger is expected to handle $30-$50 trillion by 2025, with transactions likely moving to the CTF token, the leading DeFi token on #XRPL.”
While these numbers may seem surprising, the international payments system SWIFT, used by financial institutions like those served by Ripple, processes a transaction volume of approximately $5 trillion per day.
3. Ripple Interoperability with Ethereum
A very exciting development for Ripple, which could have a positive impact on the price of XRP, is the growing interoperability with Ether. This is because Ethereum is the current DeFi leader in Web3. Meanwhile, an EVM (Ethereum Virtual Machine)/XRP Ledger side-chain is coming!
In May, interchain protocol Cosmos announced that Ripple and Ethereum developer Cosmos evmOS are partnering “to create an EVM XRP Ledger sidechain!”
“The sidechain will be built with evmOS, a modular, production-ready solution that leverages the Cosmos SDK, IBC, and CometBFT to bring EVM compatibility to Web3 enterprises,” Cosmos added.
This could be bullish for the price of XRP because the easier it is to use and spend your Ether to get a service from an XRPL Dapp (decentralized application) or vice versa, the easier it is to spend your XRP tokens directly on the Ethereum Virtual Machine and pay for the service, the more valuable your ETH and XRP tokens are in the market.
4. International Growth of XRP
Additionally, XRP Ledger has made big strides in Korea and Japan this month.
Korea’s only licensed VASP (virtual asset service provider) recently announced integration with XRP Ledger. Second a June 27 report on Investing.com:
“Infinite Block, the only South Korean cryptocurrency company to be granted a Virtual Asset Service Provider (VASP) license so far, has announced support for XRP Ledger (XRPL), the open-source public blockchain designed by American fintech company Ripple.”
Korea and Japan are among the most digitally engaged and aware nations in the OECD (Organization for Economic Co-operation and Development). Korean demand for cryptocurrency has proven formidably insatiable. Higher fees than most places and government controls on imports have failed to slow the East Asian country’s shift to Web3 adoption.
The partnership with Infinite Block is the result of Ripple Labs’ aggressive global expansion efforts. In early June, Ripple announced the launch of its XRPL Japan and Korea Fund, to “support a number of robust initiatives to drive innovation on the XRP Ledger in both countries.”
“The launch of this fund is a testament to Ripple’s firm belief in the potential of Japan and Korea as key regional hubs for blockchain innovation,” Emi Yoshikawa, Ripple’s vice president of strategic initiatives, said in a press release.
5. XRP User Activity Hits 5-Month High
According to on-chain data, transaction volume on the Ripple network for XRPL saw a significant surge earlier this month, reaching levels not seen since February.
Meanwhile, the number of whales or addresses holding large amounts of XRP (1 million or more) has grown significantly in 2024.
According to data from blockchain intelligence firm Santiment, that figure surpassed 2,000, reaching 2,043 by July 4, marking a 4.3% increase in XRP millionaires since the beginning of the year.
6. Will Ripple IPO happen soon?
After the SEC lawsuit is settled, an IPO would likely attract additional whale-sized inflows, helping to drive XRP’s price higher.
But don’t expect this to happen on Wall Street, as XRP is primarily a cryptocurrency for international payments between major financial institutions.
This is especially true after the SEC’s long and prolonged hostile treatment of Ripple Labs. The company’s CEO, Brad Garlinghouse, said in January and again last month that Ripple is actively explore how to go public and issue Ripple Labs shares to be traded on the international stock market.