There is no doubt that XRP is well placed to participate in crypto markets going forward, but if this will lead to immediate price rises is far less certain. As mentioned above, XRP prices haven’t recovered from the crypto bear market at the same rate as other popular tokens and this may continue
XRP is in the right position to follow Bitcoin’s rising trend.
Does this mean that XRP is a buy today? That all depends on what your investment goals are.
For investors that want to diversify their crypto holdings away from Bitcoin and Ethereum, XRP offers unique features that may become more appealing to crypto buyers in the coming year. It would be a good idea to have reasonable expectations about what XRP prices are likely to do in the near-term and not expect massive price gains over a short period of time.
The longer-term story for XRP is likely to be more positive. Ripple has been able to expand its operations globally and create innovative new products, even while the crypto markets suffered from a lack of investor interest.
One of the biggest questions is whether or not investors will see XRP as a DeFi token in the coming years, as the platform offers many of the same advantages that DeFi startup tokens do and it has an established track record to pull from. XRP can also be staked, which may become more important over the coming years.
Central banks are stuck at zero and higher interest rates aren’t likely to come to the fiat markets any time soon. As a token that can be staked, XRP offers both a great yield in fiat terms and also the security of being managed by a company that has shown itself to be completely reliable.
While XRP tokens haven’t recovered at the same rate that many other tokens have, the possibility of an upside surprise remains. Ripple has struggled as a result of its decision to be a US-based company and moving outside of the USA may increase its development options and also remove any further risks of securities-related lawsuits.
XRP is probably better to think about as a long-term investment in crypto adoption, rather than a short-lived trade that will create double-digit trading profits. The company behind XRP has shown steady progress in building a viable system for both crypto and fiat users and has a stellar reputation in many Asian nations