Money transfer network Ripple (CCC:XRP-USD) has been one of the fastest-growing blockchain networks in recent memory. XRP, the cryptocurrency tailored to work on the network, grew an incredible 543% in the past 12-months.
Even its regulatory troubles with the Securities and Exchange Commission (SEC) and last month’s flash crash; have done little to stop its progress. Of course, there is a risk, but Ripple has a massive growth runway ahead and is, therefore, a high return opportunity for investors.
Ripple is essentially a currency exchange and payments settlement network which can process transactions globally. The platform is an exchange for digital tokens such as XRP along with other fiat currencies. It was designed as an alternative to SWIFT (a top money transfer network) or settlement layer between various financial institutions.
So far, it has shown to have real-world utility for its users in terms of payment processing, allowing payments within 3-5 seconds. Moreover, it carries a remarkably low fee at just 0.0001 XRP per transaction. Hence, Ripple is a crypto that appears to be in it for the long haul.
The SEC filed a lawsuit against Ripple Labs back in December last year for violating federal securities laws in selling XRP to retail consumers. The lawsuit alleged that it raised $1.3 billion over seven years to retail investors through its sale of the crypto on an ongoing basis.
Ripple maintained that the XRP was separate from the company and did not violate any U.S. securities laws. The SEC essentially considers XRP as an investment contract, whereas the company believes it is a medium of exchange.
Cryptocurrency experts are closely watching the legal battle unfold between the two entities. The consensus is that the case could lead to establishing a regulatory precedent surrounding digital coin offerings.
It’s tough to see which side would prevail at the end, but Ripple seems to be in the ascendency at this time. The federal court has ruled in favor of Ripple in the preliminary rulings, including gaining access to internal SEC documentation and guarding personal bank records of the company executives from discovery.
Moreover, the holders of the XRP at issue in the litigation were allowed access to intervene in the case as well. Therefore, things seem to be moving in the right direction for Ripple.
Ripple: Price Prediction
XRP has been on a roll since the start of the year, and most analysts are bullish on its price in the coming months. FXStreet predicts that the crypto is showing a consolidation in play and is poised to cross the $2 mark. This represents a 55% increase over its current price.
Analysts at Primexbt are of the view that in the short term, XRP could rise to as high as $4. However, they also feel significant volatility with the investment and considerable dispersal between its high and low estimates.
Moreover, Longforecast predicts that XRP will likely close out the year valued at $3.12 and remain steady in 2022. Finally, Digitalcoinprice forecasts that the crypto will be priced at $1.88 after the year and reach $3.89 in 2022.
The Bottom Line on Ripple
Ripple’s XRP has been among the top performing cryptocurrencies in the past year.
However, short-term headwinds in the shape of the SEC lawsuit appear to be a challenge. It has proven resilient so far, and will push along to new heights. However, it needs to score more wins to maintain its momentum. Therefore, despite the risk, Ripple will continue to push along at a healthy pace.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.