Ethereum (ETH) and Ripple (XRP) Plummet Before Skyrocketing

Ethereum (ETH) and Ripple (XRP) Plummet Before Skyrocketing

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The whole market is in red, bitcoin continues to decline, Bitcoin Dominance is above 45% again. The market plummeted nearly 30% over the week, from $1.756 trillion to $1.267 trillion. However, some experts have a positive perspective on the future.

The leading cryptocurrency traditionally pulls the entire market with it. The players speculate to what levels bitcoin can drop, and focus their attention on BTC. However, the market is no longer limited to bitcoin alone. Despite the fact that altcoins are now falling along with the king of cryptocurrencies, the dynamics of some of them may differ from the trend.

In particular, analysts are paying attention to the two leading altcoins – Ethereum (ETH) and Ripple (XRP). Both altcoins are falling even faster than BTC: ETH is down more than 27% in a week, and XRP is down almost 34%. However, both projects have important events ahead that can push them to dramatic growth.

Great expectations are associated with the London update of the Ethereum blockchain. This is an important milestone in the transition to Ethereum 2.0. After the London update, the issue of reducing commissions in the network will be finally resolved. High fees in the Ethereum blockchain have previously provoked the migration of lucrative DeFi projects to other networks, such as Binance Smart Chain or the TRON blockchain. If fees are now low, then DeFi projects will return to Ethereum.

DeFi was an absolute hit last year as it delivers high return on investment. If the money returns to the Ethereum network, it will also drive up the price of ETH. Now the price of the leading altcoin is declining to the levels of March 2020, when the market collapsed due to the pandemic.

Ripple has a different situation. The XRP crash occurred in December last year due to a SEC lawsuit that accused the company of securities fraud. After several court hearings, Ripple practically managed to repel the attack of the regulator and prove that XRP is not a security, but is the same cryptocurrency as bitcoin and Ethereum.

The end of the story is expected by July. If Ripple emerges from these hard challenges without loss, the company declares that it is about to go public. Moreover, this will be done through an IPO, so the preparatory period may take several months. However, the very fact of a cryptocurrency company going to an IPO will highly likely push XRP to the rise of about 6x – 7x.

To date, Ripple is the only large-cap cryptocurrency that has not hit its all-time high (ATH) since 2018. Then XRP was worth $3.84, now Ripple is ready to set a 30-day anti-record below $0.51.

Hester Peirce, Commissioner of the U.S. Securities and Exchange Commission, in a recent interview with Bloomberg, practically admitted that the SEC is losing the trial. The official stated:

– What we’re doing is we’re saying that we think it’s being sold as part of an investment contract, which means that there’s promises being made around the sale of that asset. It doesn’t mean that the asset itself has to be a security.

This vague statement betrays the SEC’s uncertainty about its earlier allegations. Perhaps in the near future the XRP price will go up, since in cryptocurrencies, as in traditional trading, the rule is: “Buy on the rumor.”