Headlines have been made of Ripple\u2019s success, from the federal banking license to the rapid expansion of its RLUSD stablecoin. But there is a dissonance: as Ripple\u2019s business does well, the XRP token is not keeping pace, and investors are left to wonder what the future holds for it in terms of returns.<\/p>\n
In one of its more notable accomplishments, Ripple has won federal approval to establish a bank for the management of RLUSD reserves, putting it on the map as an entity to be reckoned with in the stablecoin space. The company\u2019s homegrown stablecoin has a market cap in the region of $2.6 billion, which by real asset volume makes it the sixth largest. About 60% of the RLUSD supply is on Ethereum and 39% on the XRP Ledger, a way for Ripple to connect various blockchains.<\/p>\n
The numbers speak to Ripple\u2019s standing in the digital asset world and the strength of its model. With annual sales at around $900 million and an institutional client base of over 1,700, the company\u2019s influence is undeniable.<\/p>\n
Then there is the matter of XRP. It is not faring as well as the rest of the ecosystem. Lark Davis points out that XRP\u2019s price is hardly moving, even after the advent of ETFs that have drawn in close to $1.8 billion in net inflows; proof enough that the company can grow and attract institutions without the token necessarily following suit.<\/p>\n
Brad Garlinghouse, the former head of Ripple, has said RLUSD is in competition with other stablecoins, XRP not included. For all the flourishing of the business since 2017, XRP\u2019s value and use are largely a matter of speculation. Some experts, as Davis has noted, would consider the present $80 billion market cap of XRP to be overvalued when one considers its utility.<\/p>\n
On his channel, Davis has made the case that the risk-reward equation for XRP is not as compelling as one might find with other altcoins. A run-up in price is possible, but the risks and tenuous connection to Ripple\u2019s fortunes are off-putting to the more cautious investor.<\/p>\n
It is something newcomers would do well to bear in mind: the corporate side of a cryptocurrency and the prospects for its token are two different things. Ripple may have made its mark with new banking and stablecoin ventures, but that is no surefire way to make money for those holding XRP.<\/p>\n
Every call by Lark Davis and how it played out \u2014 in the BuyCrypt bloggers tracker<\/a>.<\/em><\/p>\n Source \u2014 Lark Davis: https:\/\/www.youtube.com\/watch?v=-13YQOiHAY8<\/a><\/em><\/p>\n <\/p>\n Explore XRP price dynamics and practice trading risk-free with our crypto trading simulator to better understand its market behavior. XRP trading simulator<\/a>.<\/p>\n <\/p>\n