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Ripple XRP’s Rally Ahead: Analyst Identifies 3 Reasons for Stellar Performance

John KumiBy 0Edited by John Kiguru 22. August 20233 Mins Read
ripple cryptocurrency in the bright rays on background with statistics chart and arrow going up
  • A crypto analyst who has been a long-time critic of XRP has taken a U-turn, predicting a bullish run for the asset.
  • His reasons are linked to three main factors including the increasing demand for XRP in response to the CBDC popularity. 

One of the few industry key players and analysts known for being ill-disposed towards XRP is Crypto Educator and Analyst VirtualBacon. On multiple grounds, the analyst has criticized the digital asset for its underperformance and centralization. Today, VirtualBacon has shifted his stance in a new post, claiming XRP could be the best performer in the next bull run while taking a dig at some of the large-cap assets. 

I hated $XRP for years for its centralization and bad price performance. But now I truly believe $XRP will be one of the best performers in the next bull run. Most other large caps are either becoming irrelevant or have already pumped.

The sudden change of mind is attributed to three main reasons. Firstly, the analyst has observed that the asset has not retested its all-time high price of $3 for five years now. Within the period, the asset has recorded two cycles of price suppression. Another reason is its tokenomics which has proven to be in good shape. 

Tokenomics proved to be ok since 70-80% relocked in escrow in the last 3 years, Ripple didn’t dump like I feared. 

It can be recalled that Ripple introduced the escrow system in 2017 to put 55 billion XRP in locks. According to the report, the 55 billion XRP was split into 1 billion XRP each in escrow to be released every month. The plan is to control supply, ensure stability and predictability.

Right after unlocking 1 billion XRP this month, Ripple announced to be returning 800 million XRP to its escrow wallet. This indicates a complete focus on token management. 

Finally, VirtualBacon admitted to having seen a continuous increase in demand for the asset in the wake of the increasing Central Bank Digital Currency (CBDC). 

Some XRP Performances This Year 

It is important to note that XRP-related Assets Under Management (AUM) has recorded a 127 percent surge this year. On top of these factors, XRP is the only crypto apart from Bitcoin to have regulatory clarity in the US. This sets it up for institutional interest and groundbreaking partnership deals.

Following its partial victory against the US Securities and Exchange Commission, several crypto exchanges have announced their decisions to relist it for trading, boosting liquidity. Soon after the court ruling, XRP nearly doubled its value to hit $0.93 but has since been in a constant decline, currently trading at $0.520088. In the last seven days, the asset has fallen by 17 percent. 

According to analysts, the recent fall is due to the SEC’s decision to appeal the ruling. Some investors also took a cue from the Terraform Labs and SEC lawsuits. Judge Jed Rakoff from the Southern District Court of New York rejected the attempt of the blockchain company to dismiss the lawsuit, overturning the prior decision made by the US District Judge Analisa Torres on the Ripple vs SEC case. 

In the past 30 days, XRP has fallen by 29 percent and has recorded a far lower market sentiment. The asset currently has to make an 84.65 percent run from the current price to equal and overtake its all-time high price. 

 

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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