Analysis of XRP Investment Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Fool
- Strong Ripple Performance: Ripple's valuation has reached $50 billion with successful acquisitions and partnerships with major institutions, showcasing its leadership in cross-border payments, yet XRP's price has plummeted by 60% from last year's highs.
- Increased Market Competition: The introduction of Ripple's stablecoin RLUSD is gradually replacing some of XRP's market roles due to its higher price stability, leading to suppressed demand for XRP, which has fallen over 40% during the same period.
- Ongoing Supply Pressure: Ripple unlocks 1 billion XRP monthly, with a total of 62 billion XRP in circulation, indicating years of potential selling pressure ahead; although transaction fees on the XRP Ledger are burned, this has only accounted for 0.014% of the total supply.
- Shifting Investor Sentiment: Despite over $300 million in inflows into XRP ETFs indicating continued market interest, investors must recognize that the investment rationale for XRP has shifted from utility-based to sentiment-based, altering the nature of associated risks and rewards.
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Analyst Views on WSE
Wall Street analysts forecast WSE stock price to rise
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Current: 12.480
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Current: 12.480
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About WSE
Wise plc is a United Kingdom-based global technology company. The principal activity of the Company is the provision of cross-border and domestic financial services. Its products include international money transfers, Wise account, international debit card, large amount transfer, receive money, Wise platform, Wise business, business debit card and mass payments. The International money transfer product offers bank transfers, debit cards and credit cards. The Wise Account offers 40 currencies to use or keep handing and receive money internationally too, with account details and IBANs for nine currencies. The Wise Platform is used by banks, large businesses and other enterprises. The Wise Platform serves various industries, including banks, technology firms, cloud platforms and others. Its Batch Payments tool enables users to make up large amounts of payouts in one go, which can be processed by uploading a single CSV file and without the need for integrations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of XRP Investment Prospects
- Strong Ripple Performance: Ripple's valuation has reached $50 billion with successful acquisitions and partnerships with major institutions, showcasing its leadership in cross-border payments, yet XRP's price has plummeted by 60% from last year's highs.
- Increased Market Competition: The introduction of Ripple's stablecoin RLUSD is gradually replacing some of XRP's market roles due to its higher price stability, leading to suppressed demand for XRP, which has fallen over 40% during the same period.
- Ongoing Supply Pressure: Ripple unlocks 1 billion XRP monthly, with a total of 62 billion XRP in circulation, indicating years of potential selling pressure ahead; although transaction fees on the XRP Ledger are burned, this has only accounted for 0.014% of the total supply.
- Shifting Investor Sentiment: Despite over $300 million in inflows into XRP ETFs indicating continued market interest, investors must recognize that the investment rationale for XRP has shifted from utility-based to sentiment-based, altering the nature of associated risks and rewards.
See More
Wise Group's Nasdaq Debut Sparks Interest in Cross-Border Payments
- Market Dynamics: Wise Group's Nasdaq debut saw a 3.12% drop to $13.20, yet its $14 billion market cap highlights ongoing interest and competition in the cross-border payments sector.
- Business Model Advantage: By establishing local bank accounts in various countries, Wise processed $243 billion in cross-border transactions last year with an average fee of just 0.5%, significantly undercutting traditional banks' 3%-5% fees, thus enhancing its cost-effectiveness.
- Customer Funds Management: Wise currently holds $39 billion in customer funds, generating $800 million in interest income last year, indicating that its business model effectively leverages idle customer funds to bolster profitability.
- Competitive Landscape: Wise's success provides XRP investors with a new evaluation framework; while Wise and Ripple target different markets, their competition may limit each other's addressable market sizes, reflecting the effectiveness of traditional fintech infrastructure.
See More
Analysis of XRP Investment Prospects
- Strong Ripple Performance: Ripple's valuation has reached $50 billion with successful acquisitions and partnerships with major institutions, showcasing its leadership in cross-border payments, yet XRP's price has plummeted by 60% from last year's highs.
- Increased Market Competition: The introduction of Ripple's stablecoin RLUSD is gradually replacing some of XRP's market roles due to its higher price stability, leading to suppressed demand for XRP, which has fallen over 40% during the same period.
- Ongoing Supply Pressure: Ripple unlocks 1 billion XRP monthly, with a total of 62 billion XRP in circulation, indicating years of potential selling pressure ahead; although transaction fees on the XRP Ledger are burned, this has only accounted for 0.014% of the total supply.
- Shifting Investor Sentiment: Despite over $300 million in inflows into XRP ETFs indicating continued market interest, investors must recognize that the investment rationale for XRP has shifted from utility-based to sentiment-based, altering the nature of associated risks and rewards.
See More
Wise Group's Nasdaq Debut Sparks Interest in Cross-Border Payments
- Market Dynamics: Wise Group's Nasdaq debut saw a 3.12% drop to $13.20, yet its $14 billion market cap highlights ongoing interest and competition in the cross-border payments sector.
- Business Model Advantage: By establishing local bank accounts in various countries, Wise processed $243 billion in cross-border transactions last year with an average fee of just 0.5%, significantly undercutting traditional banks' 3%-5% fees, thus enhancing its cost-effectiveness.
- Customer Funds Management: Wise currently holds $39 billion in customer funds, generating $800 million in interest income last year, indicating that its business model effectively leverages idle customer funds to bolster profitability.
- Competitive Landscape: Wise's success provides XRP investors with a new evaluation framework; while Wise and Ripple target different markets, their competition may limit each other's addressable market sizes, reflecting the effectiveness of traditional fintech infrastructure.
See More
