XRP, which has been in the center of the ongoing Ripple-SEC battle for years, seems to be losing the power it once had. The cryptocurrency, which made a mark in the past and raised high hopes for investors, continues to lose its place in the market rankings as time goes by. There are believed to be several reasons for this. So, what is currently happening with XRP, and can it return to the top 5 cryptocurrencies? Let’s take a look at the current situation together.
Why Can’t XRP Rise?
XRP, which has been in the midst of the long-standing Ripple vs SEC case, never had the opportunity to surpass the $1 level that it achieved during the 2021 bull run. Even during the period when Bitcoin reached its ATH, it failed to please its investors, and the struggle for a higher price continues. On the other hand, it is observed that XRP’s competitors are gaining strength day by day. Blockchains and tokens like Bitcoin, Ethereum, Solana, and BNB, which are constantly creating value in the world of Decentralized Applications and Smart Contracts, are constantly on the agenda.
Furthermore, the entry of many new strong and current projects into the market is putting pressure on XRP, making it increasingly difficult for the cryptocurrency to rise.
The Future of XRP
One of the biggest obstacles in front of XRP is seen as Ripple’s legal battle. If the case is resolved positively, there could be some optimism about the rise in the price of XRP. However, since the case has not been concluded, this is currently only seen as a possibility. Another remarkable aspect of XRP is its failure to respond to major price movements in the market.
This was also the case when Bitcoin reached its ATH, and during the massive rally in March, while all its competitors experienced historic price increases, XRP’s price only managed to rise to $0.7. Nevertheless, in the event of a positive market outlook, XRP could see some movement in its price and could rise above the $1 level.
In the scenario where XRP reaches $1, the market value, which covers the circulating supply of 55,688,327,582 XRP tokens, can be seen to rise to the same number. This level is currently calculated to be more than twice the market cap of over $26.4 billion. Under the same market conditions, this increase could only allow it to surpass USDC.
On the other hand, for it to move into the top 5 cryptocurrencies, its value must surpass Solana, which has a market cap of $65.6 billion. The obstacle to such a scenario is considered to be XRP’s price surpassing $1.16.
In conclusion, the information contained in this article does not constitute investment advice, and investors should be aware that cryptocurrencies carry high volatility and risk, and should conduct their own research.
