XRP Defies Crypto Market Slump, Records Gains As Lawsuit Ruling Approaches
Following the collapse of Silvergate Capital Corp. (NYSE: SI), a major crypto banking company in the United States, the cryptocurrency market has turned bearish in the past week. However, Ripple-backed XRP has printed gains of approximately 3 percent in the past seven days to trade around $0.389 on Thursday. Notably, Bitcoin and Ethereum’s prices have declined by approximately 8 percent in the past seven days.
A popular crypto analyst on Twitter who goes by the name ‘CryptoBull’, has insinuated that XRP is on the precipice of a major bull rally similar to the one in 2017/2018. Notably, the XRP price has formed similar technical volatility experienced during its early stages of development.
As a result, analysts anticipate a major breakout of the XRP price should Ripple be crowned as the winner in the ongoing lawsuit against the SEC. On the contrary, the crypto asset could nosedive similar to LBRY should the SEC get an outright win in court.
XRP Market Outlook
Aside from speculation, the XRP market has significantly been adopted worldwide through Ripple’s On-Demand Liquidity program. According to the recent XRP quarterly market report, Ripple launched ODL services in France, Sweden and Africa and is now available in nearly 40 payouts markets.
The XRPL has reported a sharp uptick in NFT trading activity, which has contributed to increased XRP transaction burns. Moreover, Ripple developers have integrated XRPL with other top blockchains, including Ethereum through Peersyst.
As a result, decentralised applications (Dapps) built on the XRPL can tap into the prowess of other top blockchains without compromising security. Notably, Ripple has processed nearly $30 billion in volume and 20 million transactions since RippleNet was first launched. In 2022, approximately 60 per cent of RippleNet payments were sent through ODL.
Nonetheless, XRP price continues to be dragged down by its tokenomics, whereby Ripple has nearly 50 billion coins in its escrow account – half of the circulating supply.