With the total market cap of all cryptocurrencies now exceeding $1 trillion, Ripple‘s price is also rising as it recovers from a Christmas week crash.
About Ripple (XRP)
RippleX makes it simple for developers and entrepreneurs to take out the pain and friction that comes with integrating blockchain technologies into their applications. Through tools, services and programs built on the XRP Ledger, RippleX enables developers and their users to send and receive payments across any currency, geography and network.
The price tag of Ripple’s XRP has been on a roller coaster over the last month after a late November surge was wiped out by a lawsuit brought by the U.S. Security and Exchange Commission against Ripple, casting doubt over XRP’s future.
Ripple In the News
The news about Ripple aggregators are overflowing with stories as of late. Ripple is entwined with central banks and government central banks, global economics, stock markets, international trade and commodity prices , government spending, and inflation.
Last year, a number of high-profile investors, led by the famed Paul Tudor Jones, began to name bitcoin as an emerging inflation hedge, using to it protect against what they see as the damage being done to the stability of the dollar by unprecedented government spending and money printing. This support helped institutional investors and Wall Street giants soften their sceptical view of cryptocurrencies and bitcoin.
Ripple has publicly decried the SEC charges and has an initial hearing scheduled for later next month.
Longer term, the market sentiment towards Ripple may be bearish as investors start to be weary of its legal prospects. It may then be predicted that short sellers will emerge with the short positions of theirs, driving up the spread even further. The market sentiment is still bullish at this point and the prices should begin to reverse. This’s referred to as the “flip”.
Nevertheless, some cryptocurrencies don’t have strong fundamentals and therefore need additional support to survive. Even some national currencies including those from emerging economies like the Peru and Mexico, which are experiencing weak demand from wealthy investors. The governments in these countries are actually trying to support the currencies by creating exchanges or perhaps futures markets to provide liquidity and allow for secure trading.
The key to market sentiment and the strength of Ripple ecosystem is the presence of a reliable foundation. Without such a foundation, investors are actually likely to be attracted to strong currencies that have lower costs, greater liquidity and faster growth. Nevertheless, this sort of investment is going to require an investor that has a clear idea of how the protocol will function in the future and exactly how they intend to handle the funds of theirs.