As the crypto market withers in the heart of a bear winter, XRP remains one of the few coins bucking the downward trend. It rose by over 40% in September and continues its upward trajectory with some (possibly over-optimistic) investors targeting $1 or even higher. Hype inevitably breeds hype, but there are some solid reasons behind XRP’s recent performance.
#1 The lawsuit is coming to an end
It looks like Ripple’s court battle could end well.
XRP has been dogged by an ongoing court battle dating back to 2020. Brought by the SEC, it alleges that Ripple was operating an unregistered security offering worth $1.3 billion. Now, both parties have filed for a judge to make an immediate decision on the dispute, meaning that the end may be near. Sources close to the case expect it to have a favourable outcome for Ripple.
#2 It might be designated a commodity
The words “SEC” and “security” tend to signal a death knell for any blockchain. Ethereum tumbled 20% last week as the SEC mulled over designating it a security (which would mean much tighter regulation). However, a recent visit to Ripple Labs by the commissioner of the Commodity Futures Trading Commission suggests that XRP will avoid the dreaded “security” label and be considered a “commodity” instead. Commodities are subject to far lighter regulation than securities.
#3 It’s taken the climate pledge
Source: Twitter
Climate damage has always been one of the big talking points around crypto. The argument got even louder after Ethereum’s switch to PoS, but ETH isn’t the only blockchain eyeing up carbon emissions. Ripple recently signed the Climate Pledge. This commits the company to a green future, which includes a promise to reach zero carbon emissions by 2040. Ripple is the first major blockchain firm to sign the pledge and it positions them well for long-term growth.
#4 It remains popular with big banks
Although nothing new, Ripple’s popularity amongst big name banks gives investors a sense of security during these troubled times. Santander, PNC Bank, Standard Chartered Bank and Cuallix (amongst many others) all use Ripple technology. After the collapse of entire ecosystems like Terra/LUNA and the widespread folding of crypto investment firms, this high street backing remains a big comfort for nervous investors.
Sources
https://twitter.com/CryptoBull2020
https://twitter.com/Ripple/
