As we have entered 2022, many investors worldwide are looking for some serious instruments to increase their returns. As cryptocurrency recognizes regulation in parts of the world, investors are opening their gates to better returns in digital assets.
One such bet was placed on Ripple cryptocurrency, which saw a remarkable surge in April 2021 after a long and painful decline after 2017. The capitalization of XRP was hugely affected by the bearish movement of XRP, however, with an expectation that the current valuation might surprise many in the coming time.
Many people expect XRP to reach $5 in the coming years. So let’s understand this currency in a little detail.
What Is Ripple?
Ripple came into existence as a cryptocurrency with a new calculation method for the banking systems. Ripple was built as an alternative system of bank transfer charging minimal commissions. Ripple also ensures high-speed transactions, and the information recorded about transactions is simply different from the classic blockchain. This became one of the significant reasons for XRP’s popularity.
Many investors who believe in the authenticity of financial institutions like investing in Ripple as the node validators like American Express and Axis Bank play a significant role in XRP transactions.
Working and History of Ripple
Released in 2012, Ripple is a real-time gross settlement system. US-based company Ripple Labs Inc created it. The currency traded on the exchange is called XRP, and it was in April 2021 when the value of XRP rocketed to three times the fold. However, XRP is a little different from other cryptocurrencies. Surprisingly, Ripple is not made of blockchain but is made of a ‘hash tree.’
While other currencies can be mined, XRP cannot be mined as there are only 100 billion coins of XRP available in total. The Ripple system does not involve proof of work to complete the transaction, just like in Bitcoin, and Ripple works on consensus.
Once the consensus is reached, the transactions in XRP are complete. Because of this reason, the transaction speed through XRP is much faster. Ripple network can process 1,500 transactions in each second, whereas Bitcoin can only process three to six transactions in a similar time period. This became a crucial and favorable system for banks around the world, and thus financial institutions consider Ripple transactions regulated compared to other cryptocurrencies.
Will XRP Reach $100?
It is highly unlikely that XRP will be able to reach $100. XRP trades at $1 with a market cap of over $51billion. Considering this, the circulating supply of XRP stands near 46billion. Since XRP cannot be mined and the total supply of XRP is 100 billion, it is next to impossible that XRP value will reach $100. You can visit here to check yearly XRP coin price predictions.
For that to happen, the market cap of XRP has to be 100 times more than what it is right now. Considering the popularity of other cryptocurrencies, XRP valuation is impossible to reach $100, even in the next 10 years.
Is XRP Worth Buying at Present?
The answer to this question depends on your investment objectives and goals. Many investors and experts consider XRP to be profitable in the long term. Since financial institutions favor XRP, the popularity of this cryptocurrency will increase drastically once the regulation is in place.
Many experts claim that XRP will become a coin for the government and federation if and when cryptocurrency is regulated in parts of the world and the greatest economies. XRP is profitable right now if you understand the risks and have the patience to hold onto XRP for a longer time.
XRP Price Prediction by Experts
Experts suggest that XRp might grow to $1.5 in 2022. If the SEC lawsuit is resolved this year, XRP might soon start following the bullish movement. In this case, XRP might even break the previous record in 2018 with an estimated valuation of $3.2 in 2022. However, this possibility will only be realized if the SEC shares favorable news with XRP.
In general, XRP might reach a $3 valuation by 2023 and $4.5 by 2025. This prediction is made by CoinSwitch forecast.
Conclusion
Considering the past few years, one might say that XRP follows a slow and declining walk. If you are looking forward to investing in XRP, you have to be patient with the currency and ready to face some long declining movements. XRP will be considered a safe currency by financial institutions if and when crypto is regulated.
So one can consider XRP as a safe bet in the future. However, XRP valuation reaching $100 is highly unlikely. And if you plan to invest in XRP with a hope of a $100 hiked valuation, then you might be betting on the wrong currency.
