Hype Asset of the Day - Ripple
Ripple, the parent company of the cryptocurrency XRP, is a technology that is designed to be a digital payment network for a variety of transactions, both small and large. It was co-founded by Jed McCaleb and Chris Larsen in 2012, and it functions primarily as a payment settlement asset exchange and remittance system. It is basically the DeFi version of the SWIFT system that is used to settle transactions between different banks. The platform’s native token, the XRP, is pre-mined, and serves as a medium of exchange between two different currencies. XRP is our hyped asset of the day, and in this article, we discuss why this is the case, and what the different positive and negative hypes are surrounding the asset.
Positive Hype
There is a lot of positive crypto hype surrounding XRP, and this has been discussed in detail below:
One of the major reasons for the cryptocurrency markets moving upwards as a whole has to do with the fact that cryptocurrencies are considered to be a hedge against inflation. Therefore, with signs of impending interest rate hikes and higher inflation, more and more people are buying crypto, leading to a rise in XRP prices.
The general state of the cryptocurrency markets has been more positive, and this is largely to do with the fact that a lot of new investments have been made recently. For example, Alchemy just hit a $10 billion valuation, and increased investment in crypto infrastructure has fueled a rise in prices.
There has also been positive news regarding a pending case that XRP has against the Securities and Exchange Commission. Recently, the judge on the case ordered the unsealing of a few key documents, and the ruling is expected to come quite soon in favor of XRP.
Looking at precedents in the crypto and tech world, it does not matter whether the ruling on the case comes in favor of Ripple or not. In the past, prices have gone up simply because a case has been resolved, and the company can then focus on its operations.
Negative Hype
XRP is facing increased competition from newer cryptocurrencies that have come up that process interbank transactions.
There have been concerns raised that the security measures and consensus mechanisms used by XRP are outdated and are being outperformed by other newer cryptocurrencies.
Conclusion
In general, while there is a lot of positive and negative crypto hype, the positive hype seems to be stronger than the negative hype. The growth of the cryptocurrency market as a whole will bode well for XRP in particular because of its standing as a top cryptocurrency. The resolution on the long-standing case against the SEC is also expected to increase the bullish momentum. All of this combined means that the cryptocurrency is highly likely to see an uptick in its price over the next few trading sessions.
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