XRP losing its shine

After determining that the coin XRP issued by Ripple Labs’ did not violate securities law, leading the price of XRP to leap by 78% and is still up about 47%. According to Coin Market Cap, its market cap has increased from $25 billion to $36 billion, and its crypto market share has increased from 2% prior to the ruling 3.5%. However, XRP is currently experiencing a substantial loss of momentum and this upward trend appears to be coming to a halt as XRP has already lost half of its post-SEC lawsuit momentum. 

The current lack of institutional-grade inflows into the cryptocurrency market is one of the critical causes ascribed to this negative comment. A crucial driver of significant and long-term up-trends in the cryptocurrency market is the participation of institutional investors. Their presence not only delivers significant finances, but also adds legitimacy and stability to the market. 

Unfortunately, for XRP, despite the recent legal victory, inflows from large-scale investors remain low.  Though significant, the initial momentum that XRP received from ordinary investors following its court victory seems insufficient to sustain a long-term advance. 

The future challenge XRP faces moving forward is if whether it can attract larger investors. The token’s court victory over the SEC removed a key barrier, allowing individuals who were previously scared of regulatory issues to proceed. However, overcoming this barrier does not immediately convert into institutional support.

Risk disclaimer:

Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.