XRP has given back much of the momentum it built a year ago. According to the report, the cryptocurrency is now down about 70% from its peak and is trading close to the $1 level, despite a series of developments that were expected to support the token.
The biggest shift has been regulatory. Ripple, the company behind XRP, resolved its long-running dispute with the SEC last August, removing a major source of uncertainty that had hung over the token for nearly five years. Since then, XRP has benefited from the launch of spot ETFs, which drew investor interest even as money left Bitcoin and Ethereum funds. Ripple also recently secured full MiCA licensing in Europe, allowing it to offer payment products across 30 countries, and it may gain further support if the Clarity Act becomes law in the United States.
Competition is catching up
Even so, the report says XRP has not responded the way many investors expected. Legacy payment rivals are catching up just as blockchain-based payments appear to be moving closer to mainstream use. At the same time, much of the value seems to be flowing to Ripple, which is now valued at $50 billion, rather than to XRP itself.
That disconnect leaves the token in an unusual position: it has more regulatory clarity than it did a year ago, but its price has weakened sharply anyway. The report suggests that for contrarian investors, XRP’s lower price may be worth a closer look, especially if a new crypto bull market develops.
Source: nasdaq.com
