2024 could be a pivotal year for Ripple. With the legal hurdles of the SEC lawsuit lifted, institutional adoption seems poised to be the key driver of growth for its ecosystem. But will this translate into a price skyrocket for XRP?
According to data from Coingecko, Ripple ($XRP) ended 2023 hovering around $0.62, a surge of over 65% from January. The cryptocurrency reached its year-high of $0.82 in July following a favorable court ruling in the case between Ripple Labs and the US Securities and Exchange Commission (SEC).
Judge Analisa Torres ruled that XRP sales on secondary trading platforms did not violate securities laws. Ripple’s position was further solidified after Torres rejected the SEC’s request to appeal her July ruling on XRP public exchange sales.
However, the SEC hasn’t given up on its Ripple case, filing an appeal against the Programmatic Sales of XRP. This is particularly important as the agency just secured a victory as a judge ruled LUNA and UST are securities.
XRP Still Lags Behind
Despite the recovery, Ripple was considered underperforming compared to other major cryptocurrencies like Bitcoin ($BTC) and Solana ($SOL). Bitcoin was up nearly 160%, and Solana skyrocketed over 1000% last year. The price of XRP has been stagnant due to unclear legality. The asset has not regained its July 2023 level and has fallen nearly 24%.
After briefly climbing to $0.64 earlier in the day, XRP has retreated to $0.56 amid the ongoing market slump.
Bitcoin also slipped below $41,000 before bouncing back to $42,000. The market’s sudden drop followed comments from a Matrixport analyst suggesting the SEC could reject all spot Bitcoin ETF filings. So far, the agency’s decision on several spot Bitcoin products has been the most anticipated event this month.
Ripple Ecosystem 2024 Outlook
Institutional adoption could accelerate the growth of the Ripple ecosystem this year. Ripple has already established partnerships with several prominent banks and institutions worldwide, including Bank of America, Santander, Standard Chartered, and Axis Bank. These financial institutions have adopted Ripple’s technology to facilitate cross-border settlement and reduce transaction costs.
Ripple Labs also secured a major victory in October 2023. Its Singapore branch obtained a coveted license from the Monetary Authority of Singapore (MAS) to operate within the country. This milestone approval grants Ripple the legal green light to offer its digital payment token services directly to Singaporean customers.
Adrien Treccani, Ripple’s Senior Vice President of Product, envisions a transformative shift in the financial industry’s relationship with digital assets. Unlike in the past, when the crypto industry sought validation from traditional financial entities, the future will likely bring maturation as cryptocurrency becomes more independent.
Ripple’s executive predicts a surge in interest from major banks and corporations seeking digital asset solutions. According to him, this trend stems from growing consumer demand for streamlined, transparent, and inclusive financial services.
He further highlighted the growing trend among banks to pilot specific crypto asset applications, emphasizing the importance of conducting these trials under stringent security and regulatory frameworks.
Additionally, Treccani lauded Ripple’s milestones in 2023, notably forging partnerships with numerous global banking titans. His outlook for 2024 is bullish, anticipating a watershed year characterized by substantial growth and metamorphosis for Ripple and the broader cryptocurrency landscape.
The Legal Battle Will End
Ripple’s Chief Legal Officer Stuart Alderoty expects a resolution to the company’s lawsuit with the SEC this year and predicts potential losses for the SEC not only in this case but also in other major legal battles involving digital assets. This could potentially lead to increased scrutiny and involvement of the Supreme Court in shaping regulatory frameworks for the industry.
The SEC previously filed lawsuits against many prominent crypto entities such as Binance, Coinbase, and Kraken. While US legal action has been an important driver for XRP prices, this may not be as important going forward.
The US is in terrible shape financially, and with numerous wars to support globally, the massive USD spend isn’t ending anytime soon. With this level of money spending, inflation is inevitable. If that inflation becomes weaponized by the growing list of US enemies, the outcome for USD-based assets could be terrifying.
