As a seasoned crypto investor with a keen interest in the market’s dynamics, I have closely followed Ripple’s XRP and its ongoing legal battle against the SEC. The recent price volatility of XRP, with its sharp decline below the $0.40 mark after briefly surpassing $0.70, has left many investors hopeful for a potential price revival. However, I remain skeptical about the asset’s ability to overtake Ethereum (ETH) in terms of market capitalization.
TL;DR
- Ripple’s XRP fell to around $0.44 after previously surpassing $0.70, with hopes for a price revival tied to the outcome of the SEC lawsuit.
ChatGPT predicts that while a legal win for Ripple against the SEC could boost XRP, the asset would need additional boost to surpass ETH.
Is It Possible?
In mid-March, XRP, the digital token from Ripple, saw a substantial price increase surpassing the $0.70 threshold. However, since then, there has been a drastic decline. The token dropped below the $0.40 mark for the first time in over a year more recently. At present, according to CoinGecko’s data, XRP is valued at approximately $0.51.
Some industry participants believe that a possible revival of XRP’s price relies on a positive outcome of the lawsuit between Ripple and the US Securities and Exchange Commission (SEC). We decided to take that assumption a bit further by asking ChatGPT if the asset could flip Ethereum (ETH) in the event of a decisive win for the company.
An AI-chatbot using its intelligence indicated that a particular situation could significantly increase XRP‘s worth. On the other hand, reversing Ethereum’s trend seems unlikely and might call for extra conditions.
Ethereum’s market capitalization currently exceeds $370 billion, making it more than 14.5 times larger than XRP. Its position as the second-largest cryptocurrency has been firmly established in recent years, largely due to its expansive ecosystem. This ecosystem is comprised of decentralized applications (dApps) and smart contracts, which are crucial drivers of Ethereum’s functionality and worth.
To surpass Ethereum’s market capitalization, Ripple (XRP) must first experience significant growth in usage and value beyond its present applications. This expansion is probable when institutional investors extensively adopt XRP and favorable regulatory conditions prevail worldwide.
Ripple v SEC: The Latest Developments
The legal action against the company began in December 2020 when the regulatory authority filed a lawsuit, accusing it of selling unregistered securities through XRP transactions. Since then, the case has gone through various developments until it progressed to the trial phase in April this year.
Although this signifies the last stage, industry players may hold off on a definitive conclusion for a while due to the intricacy of the legal proceedings and potential appeals from both parties. One individual, namely American lawyer Fred Rispoli, holds an optimistic viewpoint that a settlement could be reached as soon as this month.
One significant point of contention in the ongoing disagreement revolves around the potential penalty for Ripple. The SEC originally demanded a severe penalty worth $2 billion, while Ripple argued for a fine not exceeding $10 million. More recently, the SEC has shown leniency by suggesting a fine amounting to $102.6 million.
As an analyst, I invite those who are eager to deepen their understanding of the case influencing the XRP price to check out the informative video we’ve prepared below.
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2024-07-13 12:29