How Likely is it the price of Ripple will recover in 2021?
Even when Ripple took a nosedive this past January, it made a remarkable recovery soon after.
One of the best things you can do to calm your nerves is to look at the big picture.
Ripple (XRP) is a unique cryptocurrency that is both a payment platform and a native currency. Ripple Labs created it, and its native currency is XRP.
Ripple focuses on taking out the high cost in inter-bank transactions, making it the king of banking infrastructure. Instead of completely negating all the current traditional financial systems, Ripple was designed to make payments faster and easier for centralized financial bodies making payments themselves.
XRP, the native currency of Ripple Network is used as the interchange mediator for exchanges of fiat and cryptocurrencies.
Ripple has an applicable goal to make multiple financial transactions possible with less cost and high-speed. This has made it one of the best cryptocurrencies in the market, and investors are curious to know about Ripple’s growth and price ranges in 2021.
Is Ripple's Price Rallying?
XRP was supposed to hit a bullish run in 2021, considering its institutional adoption and its expansion of brand relationships. According to experts, Ripple could soar to $1 by the end of this year.
Currently, XRP is trading with a price range of $0.457. It is also positioned in the 7th ranking of CoinMarketCap with a market cap of around $20.7B.
Unlike other cryptos, the Ripple coin is not mined, therefore has a limited supply. It has a circulating supply of 45,404,028,640 XRP coins and a max. supply of 100,000,000,000 XRP coins.
Coming to its institutional adoptions, Ripple has signed almost 300 banking and infrastructural partnerships across 40 countries. This list includes Banco Santander (SAN) and American Express (AXP), HSBC Holdings (HSBA), JP Morgan (JPM), HDFC Bank Limited (HDB), and the Bank of America (BAC).
Apart from this, several institutions facilitate XRP as an alternative to the SWIFT network, providing a real-world application. Thus, this digital currency resolves five major issues of cross-border finance: security, traceability, speed, cost, and transparency. The Ripple network has a unique consensus mechanism that enhances the overall integrity by validating transactions and balances. This makes transactions safe and secure by blocking malicious entries.
The SEC Lawsuit Against Ripple
In 2020 December, the Security and Exchange Commission (SEC) filed a complaint against the cryptocurrency Ripple. The SEC filed a litigated action in the U.S. District Court against Ripple Labs and two of its significant executive officers. The allegation was that Ripple raised over $1.3 billion in an unregistered offering of its digital asset XRP.
SEC stated that Ripple raised funds through the massive sales of XRP, and this was in unregistered securities offerings to investors in the U.S. and abroad. Despite this, the complaint also says that Ripple allegedly exchanged billions of XRP units which was for non-cash consideration. This also includes the labour and market-making service sectors.
Because of the reason that its investors anticipated profits to depend upon Ripple's efforts to manage and develop the market for XRP, the SEC complaint states that XRP is just a security and nothing else.
The Ripple Labs have finally disputed SEC's allegations and argued that "XRP is a fully functioning currency that offers a better alternative to Bitcoin and not just a security."
The Effects of SEC Lawsuit On Ripple
Ripple Labs has strongly pushed back the allegation against the SEC, arguing about the functionality and liquidity of XRP. It stated that everything is wholly conflicting with the securities regulation, and its registration as security would hamper the purported goal of becoming the faster, cheaper, and more transparent global payment system.
Despite all this, the XRP price has initially seen a fall from $0.55 to $0.20 after the lawsuit. It also triggered several exchanges and partnerships of this cryptocurrency.
One of the major pullbacks was the loss of partnership from MoneyGram. MoneyGram was one of the biggest partners of Ripple and it has altogether invested around $50 million in MoneyGram. But, MoneyGram stepped back from its partnership in a mutual agreement and cited that the legal uncertainty that swirls around Ripple labs demolishes its growth.
Will The Ripple Price Recover In 2021?
After the lawsuit and loss of partnerships, investors are curious to know whether Ripple price recovers in 2021. The Ripple price range today is $0.457, recovering from the fall. It has a 24-hour trading volume of $2,857,448,952. The underlying technology behind Ripple is highly innovative. It is continuously working with several banks to increase its access to the everyday life of people.
The negative momentum that the lawsuit had caused has affected Ripple hardly and it is still recovering from the downfall. Therefore, Ripple's future is hopefully looking good and more investors are planning to invest in this unique cryptocurrency.
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