Cryptocurrency XRP is growing steadily faster than the market all week. The hodlers hope for a favorable outcome of the lawsuit and the rally that may follow.
Since Dec 15, XRP is up nearly 20% from the price of $0.78. During this time, bitcoin has risen by 4-5%, Ethereum – by 6-8%. Most likely, the trigger for the rapid growth of XRP was the distribution of tokens (SOLO) for $860 million. This is the largest airdrop in the history of the industry, according to the developer, Sologenic Development Foundation. XRP hodlers will get 200 million SOLO, depending on how much XRP each of them will hold in his wallet at the time of the snapshot of the file system, which will be performed on December 24.
SOLO was trading at $4.3 when the airdrop was announced but is now dropping within 20%. The airdrop is backed by the largest exchange Binance. It also gave a kick to the growth of its own token, Binance Coin (BNB). The Sologenic team from Europe aims to tokenize securities on XRP Ledger using their own ecosystem.
Experts explain the possible growth of XRP after the airdrop by the fact that this cryptocurrency is now undervalued. It is the only big cap coin that has not updated its all-time high since 2018. XRP could have potential growth of 100%. At the same time, experts note that the fact that the lawsuit is lasting more than a year means that the SEC’s claim will not be fully satisfied.
In any case, the risk of Ripple Labs liquidation is virtually eliminated. Indeed, during the year, while the lawsuit lasted, the company’s order portfolio not only did not decrease but increased. Ripple has partnerships with major players in the global financial industry. However, significant growth in XRP should not be expected. The fact is that the crypto industry is growing now at the expense of institutional investors. And they do not like to take risks, so they are unlikely to invest in an asset with a bad history.
In addition, as market participants acquire higher competencies, many of them tend to participate in functional projects on the blockchains. These are platforms for smart contracts that make it possible to launch DeFi (decentralized finance) projects, launch NFTs, and develop game finance with online games (GameFi). The Ripple network and XRP Ledger do not provide such opportunities.
However, if Ripple succeeds in defeating the powerful US regulator SEC, it could lead to massive emotional purchases of XRPs. As a result, its price can rise by 2-3 times. After that, a correction is likely to follow, but prudent traders will make good profits.