Why is XRP going up: XRP, the cryptocurrency from fintech company Ripple, has seen a significant price increase over the past few weeks. After languishing below $0.30 for most of 2022, XRP surged above $0.50 in late September and has continued climbing.
Ongoing Lawsuit With SEC Nearing Resolution
One of the main factors behind XRP’s rise is the long-running lawsuit between Ripple and the Securities and Exchange Commission (SEC). The SEC filed the lawsuit against Ripple in December 2020, alleging that XRP sales constituted an unregistered securities offering.
This lawsuit has hampered XRP’s growth and caused it to underperform other major cryptocurrencies. However, the case appears to be nearing conclusion, with both sides filing motions for summary judgment in mid-September 2023. Many in the crypto community believe that Ripple has a strong argument that XRP should not be considered a security.
If Ripple wins this case, it would be a huge boon for XRP, as exchanges would likely relist the token and its adoption would accelerate. The positive developments have led investors to accumulate XRP in anticipation of a favorable outcome.
Expanding Partnerships and Adoption
Another reason for XRP’s rise is Ripple’s continuing efforts to expand the cryptocurrency’s use cases and adoption. Despite the lawsuit, Ripple has continued forging partnerships with financial institutions to utilize its On-Demand Liquidity (ODL) product, which leverages XRP.
In September 2023, Ripple announced a partnership with Santander, one of the largest banks in the world. Ripple has also partnered with financial institutions in Japan, Brazil, and other countries to facilitate faster cross-border payments.
As more entities use XRP for real-world transactions, it adds value to the token and increases demand. With ODL seeing steady growth, XRP appears well-positioned as a bridge currency for global payments.
Broader Market Recovery – Why is XRP going up
The overall recovery in crypto markets has also contributed to XRP’s gains. After a brutal bear market for most of 2022 and early 2023, cryptocurrencies have seen renewed investor interest in recent months.
Bitcoin and Ethereum have rallied strongly, bringing the total crypto market cap back above $1 trillion. As a top 10 cryptocurrency, XRP has benefited from this rising tide.
Crypto analysts have pointed to several reasons for the broad bounce back, including inflation showing signs of peaking and the Merge transition making Ethereum more sustainable.
The macro environment looks more favorable for risky assets. With cryptocurrencies regaining their momentum, traders are more willing to bid up coins like XRP that appear oversold.
Conclusion
In summary, XRP’s increasing price seems driven by a confluence of factors – the SEC lawsuit outlook, new partnerships, its utility for cross-border payments, and the improving crypto market structure.
However, crypto prices are volatile, so prices could easily reverse course. But if Ripple can win the SEC case, XRP could be poised for a major breakout. Investors should continue monitoring the lawsuit and adoption metrics as key indicators for XRP’s future price trajectory.
Ripple Live Price: https://www.coindesk.com/price/xrp/
