XRP Price Surge Faces Long-Term Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Price Peak Review: XRP reached a multi-year high of $3.65 last July, marking a 12-bagger gain from its 2023 low of $0.30, reflecting strong market sentiment following the resolution of Ripple's lawsuit.
- Lawsuit Impact Eased: The SEC's lawsuit against Ripple concluded with a lighter-than-expected fine and a ruling that XRP is not an unlicensed security when sold to retail investors, which led to major exchanges relisting XRP and restoring market confidence.
- Stablecoin Competition: Ripple's launch of Ripple USD in 2024 could cannibalize XRP's role as a bridge currency due to its inherent stability and peg to the U.S. dollar, posing long-term demand challenges for XRP.
- Ethereum's Advantage: Ethereum's smart contract capabilities and broader developer ecosystem make it a more attractive investment choice; while XRP's price has rebounded, Ethereum's market value and potential remain higher, likely drawing more developers and investors.
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.
