In a surprising turn of events, Ripple’s native crypto, XRP, has outperformed market leaders Bitcoin (BTC) and Ethereum (ETH) in the past 30 days, registering a remarkable 13% gain. This achievement comes despite ongoing legal challenges from the US SEC and the addition of one billion XRP tokens (worth approximately $515 million) to the circulating supply.
According to data, the addition of such a significant number of tokens typically results in a price decline due to selling pressure, yet XRP’s price has remained steadfast. With a circulating supply of 51.9 billion XRP, this blockchain-based payment solution has emerged as the biggest gainer among the top 30 cryptocurrencies in the past month.
Some skeptics might argue that these gains are fleeting and could fizzle out in the face of long-term uncertainty surrounding Ripple’s legal status and market impact. While it is true that the company’s situation raises questions for XRP’s future performance, recent developments demonstrate that the market has not been deterred by these concerns.
In the past week alone, XRP’s price surged by almost 12%, outstripping the growth of its larger counterparts, BTC and ETH, which only rose by 1.2% and 3.4% respectively. With XRP currently trading at an average price of $0.518 and a 24-hour trading volume of around $1 billion (despite an 11% decrease), the cryptocurrency reaches a market cap exceeding $27 billion.
Supporters of Ripple might view this success as an indication that the market is starting to recognize the potential of the platform and its ability to facilitate fast, low-cost, and secure cross-border transactions.
However, there is another side to the coin. XRP has undeniably made strides in recent weeks, but its long-term success is far from certain. With its legal predicament unresolved and the market’s tendency to change at the drop of a hat, it would be unwise to assume that XRP’s current trajectory will continue indefinitely.
As always, the cryptocurrency market is subject to sudden shifts and changes in sentiment. XRP’s recent gains might have crypto enthusiasts excited, but making informed decisions requires staying up-to-date on the latest developments and conducting thorough research before diving into any investment. The author and this publication bear no responsibility for personal financial loss resulting from investment actions taken based on the content presented here.
Source: Coingape
