The best encrypted currency must be purchased before it rises by 120%, according to a former analyst at Goldman Sachs

Xrp (Xrp 0.11%))The original symbol of Ripple Blockchain, increased by 480 % over the past three months. This amazing rise led to the strengthening of the market value of XRP to approximately 180 billion dollars, making it the third most valuable cryptocurrency in the world, yet Bitcoin (Bitcoin 0.17%)) and Ethereum (Ethereum -04%)).

But Dom Cocok, previously Goldman Sachs An analyst recently said he believed that the value of XRP may exceed the value of ETHEREUM soon. For this to happen, the XRP price must increase by at least 120 %. Let’s take a look at the previous XRP gains and potential incentives to see if this can actually happen.

Photo source: Getti photos.

What distinguishes the riple from other encrypted currencies?

Ripple Blockchain is used to direct the actual time payments, transfers and currency exchange transactions. It promotes its Blockchain’s approach as a cheaper, faster and safer alternative to the Swift (World Financial Communications Association) the most used to transfer money. Many small financial institutions – including Travelex, Tranglo and Sentbe – are already using the Ripple’s Xcurrent network in its transactions.

When Ripple launched XRP in 2013, it was hoping that its customers would adopt the distinctive symbol in their financial transactions. However, most of its customers and customers initially avoided XRP and simply used their XCurRrent network to treat paper currency payments.

The first trading price for XRP was only 0.0058893 USD only for each unique symbol, but it eventually rose to a record level of $ 3.84 in January 2018. Like many mysterious encrypted currencies, he got a batch of the growing market interest in bitcoin.

However, there are two major challenges that paid for less than $ 0.20 in 2020. First, the US Securities and Stock Exchange (SEC) filed a lawsuit against Ripple in 2020 and claimed that its initial sales of XRP symbols were illegal sales of papers Unregistered finance. This lawsuit caused the main trading platforms removing XRP, and Ripple has lost many of its partners. GrayScale, one of the largest encrypted asset management companies, has also closed its XRP box, XRP TRUST.

Second, XRP lacks the scarcity and benefit of other leading cryptocurrencies. In fact, Ripple made its full stock of 100 billion XRP icons before its launch, and it kept more than half of those symbols in its Blockchain accounts. It only releases these symbols periodically in the current offer (57.7 billion symbols) to stabilize XRP liquidity.

Therefore, XRP cannot be active like Bitcoin or any other work proof (Proof of work) Metal currencies. It cannot be bet on to obtain rewards such as proving the class (Points of saleDistinguished symbols like those in Ethereum. Unlike Blockchain POS, Ripple Blockchain cannot be used to develop decentralized applications locally (Decentralization applications), Small symbols, and other encryption assets. All of these restrictions have made XRP look like a Mimi coin more than a long -term competitor for bitcoin and Ethereum.

So why does the price of XRP rise significantly?

The largest opposite winds of XRP were dispelled last August after the Securities and Stock Exchange suit finally concluded with a fine than expected. However, the Securities and Stock Exchange resumed this ruling earlier this month, and this pressure prevented the price of XRP from bounce again.

However, most of the main digital currency trading platforms have re -included XRP after this ruling. Grayscale also re -launch XRP TRST as a new closed box (CEF) To Accredited investorsMany of the companies registered to care for their own XRP boxes.

However, the strongest catalyst for XRP started last November when Donald Trump won the US presidential elections. Trump is planning to reduce the government’s grip on the encrypted currency market, and his recent appointment to Mark Oida, the friend of the encrypted currencies as the Acting President of the Securities and Stock Exchange, indicates that the agency will stop continuing its case against Ripple.

In December, the New York Financial Services Department also agreed to the repetition of the planned company for a new stable currency linked to the US dollar. This approval can attract more financial institutions to Blockchain and stabilize the price of XRP.

To address its lack of an ecosystem for developers, Ripple plans to integrate an ethereum compatible currency Smart contracts To a new side chain associated with the XRP account book, where all transactions are recorded. This step may make XRP payments more attractive to ETHEREUM developers.

To further expand this ecosystem, Ripple works to promote itself as a platform for the coding of the real world’s assets (RWA) such as real estate, artwork and other things. Unlike non -replaceable codes (Nfts), Which are the symbolized digital assets, the RWAS is granted the owner the guardianship of the primary physical object. It can also be used to divide the ownership of a physical being among multiple distinctive symbols. If more of these assets are coded, more people can use XRP to buy them.

But will the price of XRP increase by another 120%?

Cocok says that the comfortable organizational environment in the United States and the increasing use of Ripple as a RWAS platform will push XRP to cross ETHEREUM in the near future. However, I am not convinced that XRP will become more popular than Ethereum – which is already the basis for a wide range of symbols, decentralized applications and NFTS – any time soon. Therefore, although brighter days may be in front of XRP, I will deal with the comments of this previous analyst with caution.