Ripple: The market is in the red today, after the SEC rejected the ETF application by the Winklevoss twins. This rejection has cast doubt on the CBOE application, which was the main reason behind the recent market surge. However, even as this all this happens, there is one crypto that has remained largely unchanged, and that’s XRP (XRP).
Since bitcoin shot up from $5800 to $8500, there has been very little change in the price of XRP (XRP). While the market seems to have caught the bitcoin ETF fever, XRP has averaged at around $0.45, with minor fluctuations under and above this price level. In short, it has been largely unaffected by Bitcoin’s recent moves.
While this may not be good news for a day trader looking for volatility, it paints a great picture about the future of Ripple. That’s because it could mean that XRP (XRP) is slowly setting itself apart from the value of bitcoin (BTC). In essence, the future value of XRP (XRP) will most likely be linked to its intrinsic value, and not its correlation to the value of any other cryptocurrency, especially bitcoin (BTC).
But that doesn’t seem to be working for XRP (XRP), at the moment, is it? It’s not making any meaningful gains. Well the issue is that XRP (XRP) is held down by the SEC’s decision about its status, as well as a string of lawsuits questioning its legitimacy as a cryptocurrency. This may hold it down for some time, but once that decision comes, and comes out positive, XRP (XRP)’s price rise will be exponential, independent of the rest of the market. Issues like the current Bitcoin ETF news will pretty much be irrelevant to the value of XRP (XRP).
As a matter of fact, an XRP (XRP) independent of the price of bitcoin will probably be the strongest crypto in the market, on the basis of its use-cases. That’s because by any chance it is not a security, then the value of all the partnerships that ripple has signed so far, will reflect in its price. Just for context purposes, Ripple has more than 150 partnerships with banks at this point, and they keep growing. XRP (XRP)’s usage is also going strong even outside of the banking industry. It was recently added as a payment method by Samsung, amongst several other coins.
With all these factors at play, it is clear that Ripple when valued independently of bitcoin (BTC) would be worth upwards of $10 a coin. Its fundamentals are unrivalled, and could easily see it emerge as the number one cryptocurrency in a few years. The low price movements characteristic of XRP (XRP) are simply a reflection of short-term uncertainty, but it won’t last for long. Chances are that the SEC decision will be a positive one. There is very little correlation between XRP (XRP) and a normal stock, which makes a negative decision improbable. It will be a decision that could change the trajectory of the markets.