The year 2021 has been a complete knock-off for the entire crypto industry. With BTC sailing through the $60,000 mark and many altcoins shooting through the roof like RVN, which grew more than 1000%, it’s easy to see why many people want to buy Bitcoin right now.
Nonetheless, it is impossible to ignore what has happened to Ripple’s XRP. The altcoin, which has had an all-time high of almost $4 in the old coin bull run, has continued to suffer from negative market fluctuations.
Recently, the cryptocurrency became one of the worst-performing major altcoins in the industry, followed by an SEC lawsuit that is still happening up to this moment.
In this article, you will discover what the prospection for Ripple’s future is in 2021.
Back to Basics – Ripple’s Inception
Even though most people think that Ripple and XRP are the same things, they are not. In fact, until the end of 2020, the name Ripple was still being used to refer to XRP in several cryptocurrency exchanges.
Ripple is a fintech company that utilizes blockchain to build enterprise-level technology for financial entities.
On the other hand, XRP is the name of an open-source cryptocurrency that runs on the XRP ledger, which has the purpose to be the internet of value, providing an environment where people can seamlessly send and receive money worldwide.
Ripple was part of the development of the XRP ledger and it is still one of the largest holders of XRP.
The XRP Bull Run in 2017
In 2017, XRP valuation had a major increase and the asset entered a bull run.
One of the largest factors behind the abundance in XRP was the large demand boosted by retail investors, which followed a huge trend in both mainstream and alternative media. Plus, the fame of XRP was spread further by its faithful community, which engaged actively to popularize the digital asset. XRP prices reacted accordingly, continuing their ascent towards $4.
However, asset popularity started to decline over time. Experts appointed a correlation between the fall in XRP prices and the decline in the numbers of tweets talking about the altcoin.
Consequently, the falling interest in Ripple and XRP on social media helped to generate an ever-growing devaluation of the asset.
The Beginning of the End
Even though Ripple’s XRP was still the fourth biggest cryptocurrency by value, the losses continued in 2020. The altcoin got to the point of losing half its value in less than 24 hours, which marked the beginning of the end for Ripple.
The final blow came in December 2020, after the US Securities and Exchange Commission (SEC) has charged Ripple for allegedly raising $1.3 billion in an offering of unregistered digital securities, stating that the token had been illegally marketed to the public.
Following the lawsuit, several cryptocurrency exchanges started to remove XRP from their platforms, as experts began to point out XRP’s was entering a dead-end alley. San Francisco-based Bitwise Asset Management reacted by utterly liquidating its XRP positions, while crypto exchanges such as OSL, CrossTower, and Beaxy have either suspended or remove XRP trading from their platforms.
The SEC lawsuit against XRP also led industry-leading exchange Coinbase to suspend trading on all XRP order books within the platform. Even though users are still able to deposit and withdraw the altcoin, they cannot buy, sell or convert XRP.
Ripple Fights Back
Nonetheless, the company is not willing to go down without a fight. Ripple’s CEO, Brad Garlinghouse, who was also served with charges of violating the US Securities Act, has decided to fight the lawsuit.
Garlinghouse stated via blog posts that he believes the SEC is completely wrong on the fact. Plus, he stated that the company is confident that they will prevail before a “neutral fact-finder”.
Besides, Garlinghouse stated that the SEC has permitted XRP to be traded as a currency for more than eight years. He also questioned the motivation behind the lawsuit being brought days before the change in the White House administration.
What Lies Ahead for Ripple in 2021? – Final Thoughts
Unfortunately, the most positive prospects for Ripple in 2021 seen unfeasible.
It is plain to see a clear correlation between Ripple’s dwindling popularity on social media and its continuous devaluation. Plus, the SEC lawsuit came as a further blow against a potential recovery in Ripple’s price, even more than the ETH price when it suffered from major FUD and negative press attacks.
Accordingly, XRP’s fall is becoming more and more evident, despite the huge efforts of the company to survive and gain time to breathe while it is still possible. Even though, many crypto investors decided to still hold on to the asset, maintaining their funds as they are and wishing for the best.
While some experts point out that XRP investors tend to be emotionally attached to the altcoin, others still believe that the SEC lawsuit will not affect Ripple’s structure as a whole, especially due to the huge number of XRP investors abroad.