Over the past several weeks, Ripple’s native token, XRP, has seen significant activity and developments. This article provides a summary of the latest updates and offers an analysis of the token’s price trends.
Is Ripple’s Legal Battle with the SEC Concluded?
The ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC) has drawn immense attention from the crypto community over the years. Recently, developments have pushed the case towards its long-awaited conclusion. According to Ripple’s CEO, the SEC ceased their appeal against the firm in March. A preliminary agreement on a $50 million settlement was reached earlier this month, implying a potential end to the dispute if the presiding judge approves.
This settlement amount is substantially lower than the $125 million fine previously imposed on Ripple for supposedly violating securities laws. Despite the jubilation among XRP enthusiasts, some SEC members expressed disappointment. SEC Commissioner Caroline Crenshaw contended that this verdict undermines earlier rulings and impairs the credibility of the SEC’s enforcement program.
Possible Launch of XRP ETF
Several prominent companies, such as Grayscale, 21Shares, Bitwise, and WisdomTree, have sought to introduce the first spot XRP exchange-traded fund (ETF) in the US. The SEC recently postponed a decision on Bitwise’s application until June 17, shifting the focus to Grayscale’s proposal to convert its Digital Large Cap Fund (GDLC) into a spot ETF by July 2.
The establishment of such a financial tool would offer investors additional avenues to gain exposure to Ripple’s cross-border token, which could positively influence its price. Polymarket suggests that the odds of the product launching before year-end are nearly 80%.
Growth of RLUSD Stablecoin
Ripple made news last year with its intention to create a stablecoin, RLUSD, pegged 1:1 to the US dollar. RLUSD went live in mid-December and was immediately adopted by top crypto exchanges like Uphold, Bitso, Bitstamp, and Moonpay. Since then, other significant industry players, including Kraken and US-based Gemini, have followed suit.
Despite RLUSD’s progress, it trails behind major stablecoins. At present, its market capitalization stands at over $315 million, significantly lower than leaders USDT and USDC, with $150 billion and $60 billion, respectively.
XRP Price Projection
On May 12, XRP experienced a surge in value, reaching a two-month high of nearly $2.70 before correcting to $2.54. This significant uptick has drawn the attention of several analysts, some of whom forecast a further rise in the short term. Analysts suggest that if XRP can maintain its support above $2, it could potentially reach $3.28 and possibly even exceed $10.
