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5 Key Factors That Could Propel XRP's Surge in 2024
- Understanding the Potential for a Ripple (XRP) Surge in 2024
- Recent Performance of Ripple's XRP
- Growth in Global Partnerships
- Effects of the SEC Lawsuit
- Potential Ripple IPO
- XRP Transaction Fees and Supply
- Impact of the Bitcoin Market Cycle
Understanding the Potential for a Ripple (XRP) Surge in 2024
As we move into the new year, the digital asset market has been less than stellar. Despite key announcements and industry developments, the reality has fallen short of the predictions made in late 2023. Despite this, there are several reasons why Ripple's XRP$0.620 -1.68% could still experience a surge in 2024.
Recent Performance of Ripple's XRP
Over the past month, Ripple's XRP token has seen a decrease in its value by more than 15%. While there are hopes for a turnaround in the following weeks, the performance has been disappointing. Nevertheless, there are several indicators that suggest a possible turnaround, potentially leading to a significant increase in the asset's value as we continue into 2024.
Growth in Global Partnerships
One key factor to consider when discussing the potential increase in Ripple XRP's value is the company's expanding portfolio of global partnerships. In the past year, Ripple Labs has announced several crucial partnerships, including collaborations with entities in the United Kingdom, Asia, and Africa.
Such partnerships are likely to enhance the Ripple brand, driving more activity to the company's RippleNet. These developments should, consequently, increase the overall value of the XRP token. Ripple Labs is also working closely with various nations on Central Bank Digital Currency (CBDC) development and has received authorization from the Ireland financial regulator to operate as a Virtual Asset Service Provider (VASP). These major developments could have a significant impact on the XRP price in the coming year.
Effects of the SEC Lawsuit
Ripple Labs has been engaged in a lawsuit with the US Securities and Exchange Commission (SEC) for several years. Despite this, momentum in favor of Ripple Labs has grown recently. Notably, Judge Annalisa Torres ruled against the SEC's classification of XRP tokens sold on the secondary market as securities. Additionally, the SEC lost its appeal against the decision and dropped its ongoing lawsuit against Ripple's founder and CEO, Brad Garlinghouse.
While both parties have been quiet in 2024, remedies are expected to take place on the 12th of February. This could potentially put an end to the lawsuit that began in December 2020, possibly boosting the value of the asset.
Potential Ripple IPO
There have been discussions of a potential Ripple IPO occurring in 2024, which could serve as a strong catalyst for an XRP price surge. The chances of such an event will be further bolstered by a positive outcome in the ongoing SEC trial. However, Ripple Labs has noted that the US regulatory environment is less than favorable, so they might seek other avenues for their potential IPO. Nevertheless, the idea has been floated, and the potential realization of such a move has been made public.
XRP Transaction Fees and Supply
An additional factor contributing to a potential surge in the XRP price is the asset's transaction fees and supply structure. XRP boasts a low average transaction fee of $0.0014 for international payments. This benefit could greatly enhance XRP's value. The price of XRP could also be positively influenced by its supply structure. Similar to Bitcoin$42,260 -0.64%, XRP has a hard supply cap of 10 billion XRP, with all tokens scheduled to be issued by May 2027. The scarcity of supply could bolster the asset's value.
Impact of the Bitcoin Market Cycle
Ripple's XRP could see significant gains from the Bitcoin 4-year market cycle, especially with the expected Bitcoin halving in April this year. This event typically kicks off a 1.5 to 2-year bull run for digital assets. If history repeats itself, XRP could experience a surge in 2024, driven by the Bitcoin market cycle and other factors.
While the digital asset market is inherently unpredictable, the Bitcoin impact is almost certain. The entire industry is likely to see a significant boost, and these factors could align to pave the way for an XRP surge in 2024.
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