In a recent proclamation that has stirred the cryptocurrency community, influencer John Squire predicted that the XRP token is on the brink of an explosive uptick. Squire’s remarks came on the microblogging platform X, where he cited a six-year-long accumulation phase as a precursor to this surge.
Traditionally, accumulation is a term used in the asset world to describe a period of minor price fluctuations following an uptrend or downtrend. Significantly, XRP underwent such a phase post-2018 when it marked an all-time high of over $3. Since then, its price has spiraled down to $0.479, positioning it as the sixth-largest digital asset by market capitalization.
Besides its past performance, recent actions in the institutional investment sphere also point to a potential boom. XRP-focused investment products observed an inflow of $700,000 last week. Astonishingly, this occurred when the broader cryptocurrency market saw an outflow of $59 million. Consequently, the increasing institutional interest could act as a catalyst for XRP’s growth.
Moreover, a groundbreaking ruling by Judge Analisa Torres in the U.S. Securities and Exchange Commission (SEC) case against XRP has fanned investor interest. The judge differentiated between XRP’s sales to institutional investors and on exchanges, indicating that the token isn’t necessarily a security. This led to the relisting of XRP on major exchanges like Coinbase, Kraken, and Gemini, significantly enhancing its liquidity.
Additionally, technological upgrades to the XRP Ledger are on the horizon. These updates could increase transaction throughput from around 1,500 to 3,400 transactions per second (TPS). This improvement in scalability could make XRP more attractive to retail and institutional investors.
Soon, XRP may offer yet another avenue for income through the anticipated XLS-30d amendment. This will introduce a built-in automated market maker (AMM) platform. AMMs facilitate permissionless cryptocurrency trading through liquidity pools rather than traditional order books. Investors supplying tokens to these pools could earn a share of the trading fees, albeit with associated risks.
Hence, the combination of regulatory clarity, institutional interest, and upcoming technological advancements makes a compelling case for XRP’s potential upswing. Time will tell if John Squire’s bold prediction will materialize, but the undercurrents are increasingly hard to ignore.