XRP Drops 40% from July Peak; Ripple's Products Face Adoption Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Poor Market Performance: XRP has dropped over 40% from its July peak, currently priced at $2.06 with a market cap of $125 billion, reflecting waning investor confidence in the crypto market and potential for further sell-off pressure.
- Adoption Barriers for Ripple Products: Despite Ripple's On-Demand Liquidity (ODL) product aiming to facilitate cross-border transactions using XRP, the actual adoption rate remains low due to banks' concerns over the risks of holding volatile assets, limiting XRP's widespread application.
- Stablecoin Competition Threat: Ripple's acquisition of a stablecoin payment company and its national bank charter application indicate a potential shift towards using RLUSD as the preferred bridge asset in ODL transactions, which could undermine XRP's market position and impact its future value.
- Lack of Fundamental Valuation: XRP's valuation lacks traditional stock metrics, and while its market cap stands at $130 billion, it processes significantly fewer transactions compared to Visa's $630 billion market cap, suggesting that the market may be overestimating XRP's value based on hype and speculation.
Analyst Views on V
Wall Street analysts forecast V stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for V is 402.76 USD with a low forecast of 315.00 USD and a high forecast of 450.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
21 Buy
5 Hold
0 Sell
Strong Buy
Current: 327.750
Low
315.00
Averages
402.76
High
450.00
Current: 327.750
Low
315.00
Averages
402.76
High
450.00
About V
Visa Inc. is a global payments technology company. It facilitates global commerce and money movement across more than 200 countries and territories among a global set of consumers, merchants, financial institutions and government entities through technologies. It operates through the Payment Services segment. It provides transaction processing services (primarily authorization, clearing and settlement) to its financial institution and merchant clients through VisaNet, its proprietary advanced transaction processing network. It offers a range of Visa-branded payment products that its clients, including nearly 14,500 financial institutions, use to develop and offer payment solutions or services, including credit, debit, prepaid and cash access programs for individual, business and government account holders. It also provides value-added services to its clients, including issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions and advisory services.
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.
