Since the start of the new year, the digital asset market has not had a good start. Despite the historic announcements that have taken place, the industry has failed to meet the sky-high expectations set for the end of 2023. Therefore, despite Ripple’s performance so far, we have 5 reasons why XRP could still increase in 2024.
Over the past 30 days, Ripple has seen the value of its XRP token drop by over 15%. Despite renewed hope of a turnaround in the coming weeks, its performance has certainly been lackluster. However, we provide several signs as to why a turnaround could be on the cards. Additionally, we explain how this could lead to an explosion in the value of the asset at the end of the first month of 2024.
Growth of global partnerships
Also Read: Is Ripple (XRP) Eyeing 20% Gains in February Bounce?
One of the first things to look at when discussing a possible rise in Ripple XRP in 2024 is the company’s continued growth in global partnerships. Indeed, last year, Ripple Labs saw the announcement of several key partnerships. Specifically, he unveiled cooperation with the United Kingdom, Asia and Africa.
This type of partnership will only grow the Ripple brand and bring even more business to RippleNet companies. Subsequently, these developments should then increase the overall value of the XRP token. Although significant progress was made last year, it pales in comparison to his hopes for the year ahead.
Ripple is still working with various countries on CBDC development and has received permission from the Irish financial regulator to become a Virtual Asset Provider (VASP). These major developments are expected to have massive implications for the coming year as the XRP price attempts to rebound.
Also Read: Ripple (XRP) Price Prediction: February 2024
Ripple Labs’ ongoing lawsuit with the United States Securities and Exchange Commission (SEC) has dominated its presence over the past few years. However, it has also gained considerable momentum during this year. Furthermore, many believe that a conclusion should come as soon as possible.
Significant developments have occurred in Ripple’s favor in three specific areas. First, Judge Annalisa Torres ruled against the SEC’s continued safe harbor status for XRP tokens sold on the secondary market. Second, the SEC lost its appeal of this decision. Finally, the SEC has dropped its ongoing lawsuit against Ripple founder and CEO Brad Garlinghouse.
Both sides have remained silent so far in 2024, but corrective action is expected to take place on February 12. Therefore, many expect the trial that began in December 2020 to end soon. Ultimately, this could propel the asset to new value.
Also Read: Ripple (XRP): Could a Drop Below $0.50 Trigger a Reversal?
While this is by no means certain, the presence of a Ripple IPO this year is a powerful catalyst for an XRP price surge in 2024. Indeed, the likelihood of such a development increases with an outcome positive from the ongoing trial with the SEC, as previously mentioned. .
Ripple Labs said the US regulatory environment is far from favorable. Therefore, they cannot choose to look elsewhere when it comes to their IPO hopes. However, the debate is present and the prospects for such an approach have been made public.
The potential arrival of an IPO depends on the lawsuit filed by the SEC. One could therefore be quickly followed by the other. If so, the price of XRP would see two major developments that would propel it to heights not seen in 2024.
Transaction fees and XRP supply
Also Read: Ripple (XRP) Stuck at $0.51 Pivot Support; Will it hold?
Another reason for a potential rise in the price of XRP is transaction fees and the structure of the asset supply. First, XRP charges an average transaction fee of $0.0014 to make a cross-border payment. This fact is a huge advantage that XRP enjoys and could take full advantage of it this year.
Transaction fees are a significant part of the digital asset industry. Even someone like Solana, known for its sub-$0.001 fees, exploded 576% last year. Therefore, Ripple can benefit if it can keep these transaction fees low. Alternatively, the price of XRP should benefit from the supply structure it begs for.
Similar to Bitcoin, XRP has a hard supply cap of 10 billion XRO. With each Ripple token due to be issued in May 2027, the scarcity of supply increases the value. Indeed, these two fundamental infrastructure realities are faces of an asset that could help facilitate the potential ramp-up in the coming year.
Bitcoin Market Cycle
Also Read: Ripple Unveils Highly Anticipated XRP Ethereum Sidechain Update
Finally, Ripple (XRP) stands to benefit massively from Bitcoin’s 4-year market cycle. Indeed, the Bitcoin halving is expected to take place in April this year. Additionally, this development typically marks the start of a one-and-a-half to two-year bullish period for digital assets.
This could be vital for XRP. If history repeats itself, the Bicoinc market cycle could come into play alongside a host of other developments that could have massive implications on the asset’s price.
There is no certainty when it comes to the digital asset market, but Bitcoin’s impact is almost assured. The entire industry is expected to see a huge boost, and these other factors could align to pave the way for XRP to rise at some point in 2024.