biggest cryptocurrency Ripple, one of its projects, has been fighting its legal battle with the SEC for about 4 years. Despite achieving significant gains in summary judgment, the SEC, unhappy with the court’s decision, appealed the decision, causing the XRP Coin price to drop to $0.5 levels. So what will happen in the long run?
XRP Coin Case Latest Status
The SEC has filed its objection, but the details are not yet fully clear. Institution probably Ripple with XRPHe will present more evidence to the court to prove his strong connection in the early period. If you remember, years ago, Ripple, XRP Coin and Ripple company kept their distance from the token by saying different things and took various steps to minimize the damage it would receive in the case.
If the SEC can convince the court of the strong connection between the two with stronger evidence, this will strengthen its hand. On the other hand, many lawyers made statements in favor of XRP last year regarding the appeal performance of Torres’ decisions. This means that Torres may have made the decision without any loopholes and in a convincing manner, and that the possibility of the decision being overturned in the second chamber is low.
The Ripple case may continue for at least 1 more year. Considering the objections of the parties, the hearings, and the answers to these objections, the case will probably enter its fifth year. This means that XRP Coin may experience limited growth in the coming bull season, possibly under legal pressure.
It is also useful to know that the trading of XRP Coin on cryptocurrency exchanges cannot be considered as a security until the appeal process is finalized, and the final decision will remain valid (until it is overturned).
Future of XRP Coin
The first issue is the circulating supply of XRP Coin. We all know that the maximum supply is 100 billion, and this is constantly included in the circulating supply. With gradual unlocking, the supply, which was 45 billion at the beginning of 2021, is 56.5 billion today. In other words, more than half of the maximum supply has entered circulation. At the beginning of 2018, the circulating supply was 38.7 billion.
When making predictions about the future price XRP Coin‘s market value and today’s share can be used as criteria. In this case, a table like the one below emerges.
XRP Coin had a circulating supply of 41 billion in 2019 at a price of $0.34 and saw a market cap of $13.94 billion. At its peak in April 2021, it exceeded $70 Billion. In 2018, when it exceeded the market value of 100 billion dollars, its circulating supply was at 30 billion. Now, the table calculates how much market value it will see in 2025 when the price is 1, 2 and 3 dollars. If the price is 1 dollar, it should reach a market value of 59.9 billion dollars when the supply is at 59.95 billion due to 6% annual inflation. When we compare the share of XRP Coin in the cumulative value of cryptocurrencies with the new market value, the cumulative value of cryptocurrencies should reach the record level of 4.43 trillion dollars.
In an environment where XRP Coin, which needs to reach a market value of $ 119 billion for $ 2, achieves this, cryptocurrencies will need to see a market value of $ 8.87 trillion compared to today’s market share. For your better understanding, I can say that BTC should reach a unit price of $ 447,000 in the same environment.
The numbers are not exact, and they don’t have to be that way. What needs to be understood here is that even if we take the 6% token inflation of the last 12 months as a basis, the market value of XRP Coin, which has a maximum supply of 100 billion and a current circulation supply of 56.5 billion, will reach 3 dollars in 2027 with a circulation supply of 67.3 billion. billion dollars. This means that the total market value of cryptocurrencies is close to 15 billion dollars. BTC It doesn’t seem logical since it would mean the price would be $768,000.
At best, the Ripple team pursues a strong deflation policy by foregoing new unlocks and burning their holdings to increase the token value. It can support unit price growth by having major banks lock up huge amounts of tokens through corporate agreements and so on.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
