The ongoing ups and downs of various cryptocurrencies have been nothing short of a rollercoaster ride, a vivid display of the volatile nature of the crypto markets. Coinciding with waves of optimism and pessimism, the total market capitalization of USD Coin (USDC), the world’s second-largest US dollar-pegged stablecoin, surpassed that of XRP, a digital token powering the decentralized XRP Ledger.
Notably, the lead swap came as XRP, issued by fintech firm Ripple, experienced a stumble in its price trajectory amidst the broader market downturn spurred by fears over potential digital asset liquidation from bankrupt crypto exchange FTX. While notable contenders including Bitcoin have rebounded, XRP’s comeback appears to be a much more prolonged process.
This has not been an entirely isolated incident for XRP – it had been steadily facing a downtrend ever since its winning streak was halted at multi-year peaks, post a partial courtroom victory against the SEC with respect to alleged unregistered security sales worth $1.3 billion. This downturn has been an opportune moment for USDC, despite its own market cap experiencing a descent since a record high last June.
Questions around the level of collateralization of USDC — backed 1:1 with real dollars or equivalent liquids ensconced in various US banks — following a minor banking turmoil in the US, further expedited the decline of its market cap.
The XRP narrative now lies largely in the hands of ongoing developments in the Ripple vs. SEC lawsuit. After a court ruling recognizing XRP as not necessarily a security, all eyes are on the SEC’s challenge via an appeal motion. Ripple’s President, Monico Long, has assured via a CNBC interview that they intend to continue battling the SEC, leading many observers to believe that XRP’s future is rather hopeful.
Off course, prudence is key when it comes to crypto investment. As such, exploring better-performing coins can be useful in these overwhelming periods. One such alternative is the coin launched by Wall Street Memes – a significant retail investing community with over 1 million followers across social platforms. The coin, $WSM, is backed by many significant crypto industry influencers, making it a promising addition to diversification efforts.
Please bear in mind, investing in cryptos can be a hit or miss journey. The information provided herein serves as a descriptor of market conditions and should not be taken as financial advice. Tread warily as you could lose your entire capital while navigating in these virtual monetary markets.
Source: Cryptonews
