Factors that will Influence the Price of XRP in the Future

When Ripple launched XRP in 2012, Bitcoin was already making waves on the crypto market, with the first halving when the mining reward dropped from 50 BTC to 25 BTC per block.

As Bitcoin became more difficult to acquire and mine, Ripple became an alternative since it’s an affordable cryptocurrency and a reliable digital payment protocol. 

Ripple can even be considered an improved version of Bitcoin from several points of view. First, it doesn’t use an energy-intensive mining technique like Bitcoin and has instead pre-mined all the XRP supply before Ripple launched the cryptocurrency. At the same time, the company reached out to numerous financial institutions and payment providers to collaborate on improving the economic system. 

Unfortunately, Ripple’s development was affected by the US SEC legal complaint made in 2020, so making an XRP price prediction must include this ongoing issue. But first, let’s see what factors will weigh more on the XRP price in the future. 

Global Adoption by Financial Institutions

Increased adoption of the cryptocurrency ecosystem will have an impact on all digital assets, including XRP because they’ll become more available and approachable to regular customers. Since Ripple is already collaborating with some banks and companies, this movement might trigger a boost in demand, which will automatically drive prices up quickly.

The adoption element also depends on the government’s willingness to accept and regulate cryptocurrencies because only a few have done this currently. Countries like El Salvador, which made Bitcoin legal tender, or Singapore, which has the best market integrity laws, contribute to worldwide adoption. However, crypto is illegal in places like Bangladesh, China, and Egypt, so adoption might take some time to happen.

Legal Battle with the SEC

The troubles with the US Securities and Exchange Commission (SEC) started at the end of 2020 when the institution stated that Ripple sold XRP tokens that were unregistered securities. Since then, the court ruling has been on and off, with the SEC fighting with Ripple, and there doesn’t seem to be any light at the end of the tunnel.

The latest court meeting resulted in the SEC asking for $2 billion from Ripple Labs as a penalty. The legal battle between Ripple and the SEC is still on-going. 

Upcoming Events

The price of XRP will definitely be affected if the media coverage of the crypto market shifts in certain directions. For instance, if positive news is shared on the internet, the Fear and Greed Index will most likely show positive market momentum regarding crypto, including XRP.

Unfortunately, there are times when the media rules over the crypto market and considerably affects its dynamic. Times like the Bitcoin halving or the downturn of ETH ETFs can make it easy for scammers or publications to spread negative news about cryptocurrency, which can sometimes be more or less close to the truth. Therefore, investors must be wary of what they read during these periods because unprofessional opinions can influence them.

The Regulatory Landscape

Considering that cryptocurrency was an increasing trend among regular investors, more regulation has been provided in this direction. Over the past year, numerous crypto regulations have been passed in a few countries’ governments, showing more interest in this sector. Licensing crypto, regulating stablecoins, and developing the crypto framework have been prominent concerns for governments, so they’ve settled in around 42 countries worldwide.

Although many official decisions hit Ripple due to the SEC, the court decided in 2023 that XRP sales were securities when sold to institutions but could be considered commodities on exchanges. Another important regulatory change happened when the first BTC Spot ETF was approved, even if the SEC initially denied it. Therefore, the crypto industry is moving forward but is making significant efforts to achieve adoption.

Technological Developments of XRP

Since technology backs up the entire crypto market, its development and innovation rate will automatically influence cryptocurrencies and the blockchain ecosystem. Indeed, Ripple's open-source platform leverages interesting tech functions, such as the digital hawala service and a special consensus protocol, and uses IOU credits and transactions.

However, emerging technologies like artificial intelligence or automation can significantly change the crypto industry. Developers are creating AI-based tokens or using AI for trading to better analyze data and offer accurate price predictions. Hence, the adoption of these technologies will surely lead to a price surge for XRP and all the other cryptocurrencies on the market.

Ripple's Competitors and their Drawbacks

Finally, it may be possible for Ripple to become more prevalent in the future if we consider its competition, such as Bitcoin or Ethereum, which are energy-intensive and expensive due to high gas fees. The Ripple platform handles millions of transactions, and they’re all settled in a few seconds due to its Ripple Protocol Consensus Mechanism (RPCA) that connects the nodes with the ledger. This makes Ripple significantly cheap and fast.

At the same time, Ripple is more sustainable than Bitcoin since it doesn’t use mining, employs eco-friendly technology, and collaborates with green industry pioneers. The company aims to set the standard for carbon-neutral cryptocurrencies and decarbonize the XRP Ledger by partnering with the Energy Web Foundation.

What's Next for Ripple’s Future?

Ripple is among the Ethereum Killers and a potential Bitcoin competitor because it offers high-end technology features at high speeds and affordable rates. The Company and its ledger use the XRP cryptocurrency, which has slowly but steadily progressed on the market despite regulatory challenges and negative media coverage. Hence, it withstood several price changes, but its potential for the future will be influenced by global crypto adoption, the end of the battle with the SEC, and future technological developments.