Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. While this can significantly influence Ripple’s reputation and make it an effective investment, many people still https://www.tokenexus.com/ think whether it’s the right time to invest in XRP. There are a number of reasons to consider why XRP can be an excellent buy right now. First of all, XRP is traded at a very low price right now, which is more than 4 times lower than its highest price. XRP has the potential to hit its previous all-time high, which could mean high gains if you buy right now.

But investors shouldn’t put too much faith in analysts’ price predictions for XRP. For example, Thomas Kralow, a crypto hedge fund manager, previously claimed XRP could hit $30 this year. But that forecast seems absurd because it would give XRP a market cap of $3 trillion, more than double why is xrp price so low the current market cap of all of the world’s cryptocurrencies combined. Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption.

Summary – Should You Invest in XRP Now?

In the financial world when billionaires and millionaires wish to invest their funds into anything. They will always find the best price and that is directly from the source. To understand why this is happening we must first understand the nature of stock markets. XRP is sold to sustain the business of Ripple (see misunderstanding 12), but when the holdings are depleted, there is no continued income from the XRP asset itself; hence it is not a sustainable revenue source. As Ripple holds a majority of XRP (around 60%), it is a natural part of their revenue model.

Having a loyal community of supporters is a great advantage for the crypto project. Along with the popularization of blockchain, developers are trying to come up with new ideas to make the mining process less harmful and to create greener cryptocurrencies. XRP already uses Green Ledger to operate its blockchain and suits the trends in the blockchain sector. Since this drop, XRP hasn’t been able to make a lot of headlines in the market. All eyes are now on the US SEC’s final call, as it would determine XRP’s future price action.

Is it the right time to buy XRP?

Even during the tough period for the coin, XRP price never dropped below $0.1, and its price has remained stable between $0.2-$1.5 during the last 3 years. Crypto expert Benjamin Cowen shared insights into the recent dip in altcoin prices, attributing it to a typical phase in the market cycle. He pointed out that during such periods, Bitcoin (BTC) tends to dominate, leading to more substantial declines for altcoins.

• As the crypto market continues to recover, Ripple’s proactive measures aim to bolster confidence and stability within its investor community.
• In 2026, Ripple will establish partnerships and memorandums of understanding with many of the world’s top financial regulators.
• Finally, if the price of the XRP token continues to rise, it will be unfeasible to use Ripple for international money transfers.
• This distinction is particularly relevant for retail investors who experience the market differently depending on whether they are affected by direct sales or exchange-based selling pressure.
• As XRP plays a crucial role in Ripple’s ecosystem, it will get more recognition and adoption once Ripple gains more popularity and expands its collaborations.

Hence, transactions in XRP are verified faster and cost traders a small fraction of a penny which makes XRP an excellent asset for trading. This is why XRP is still popular among traders despite the SEC’s lawsuit against it. Another plus is that XRP is one of the less risky cryptocurrencies if we consider its market capitalization. XRP is a large-cap crypto with a market cap of $33.4 billion at the time of writing. SEC lawsuit made many popular exchanges temporarily suspend XRP trading, which led to the price drop. This also coincided with the largest bull market in the cryptocurrency sector, with many cryptocurrencies hitting new all-time highs.

Ripple CTO Explains Why XRP Price Is So Low

The support XRP gets can highly affect other investors’ opinions about XRP and even change their opinion about the future of this cryptocurrency in a positive way. Before the SEC lawsuit, Ripple was already popular among financial institutions, and it had been trusted by several banks from 55 different countries. Among the popular banks that already partner with XRP include Bank of America, PNC Bank, Cuallix, etc. Even if these predictions seem quite achievable for XRP and the technical indicators show that XRP growth is possible, still investors must be cautious with their money.

• Since then, the remittance token has not had a good time in terms of returns.
• Crypto expert Benjamin Cowen shared insights into the recent dip in altcoin prices, attributing it to a typical phase in the market cycle.
• In fact, Ripple has one of the largest communities in the crypto space, with millions of followers on social media.
• According to the same statement, cryptocurrency can be considered a security if it is sold to financial institutions.
• Another reason to believe in the future of XRP is that it’s the only cryptocurrency that has strong collaborations with the financial industry, including ledge banks from different countries.
• You could invest in XRP if you believe Ripple has potential and that it’s likely to reach a favorable outcome in its SEC lawsuit.

Consequently, XRP’s performance in October reflects a 2.68% decrease, erasing earlier gains. Just like in the past when Judge Torres ruled in July, XRP has recently faced a significant drop in its price. After Judge Torres rejected the SEC’s interlocutory appeal, XRP lost a whopping 72% of its gains, leaving investors in a tough spot.