Is XRP Still a Good Investment After Its 500% Rally?
Ripple’s native cryptocurrency XRP has been performing well in the cryptocurrency market, surging nearly 500% from $0.50 to $2.60 in recent months. Despite such significant growth, XRP came under fire in a video titled “Everything Wrong With XRP,” sparking debate within the crypto community.
Main criticisms of XRP
this The author of this video outlines Three key reasons why XRP may not be a solid investment.
Stablecoin alternatives: The author believes that XRP’s original role as a bridge currency for cross-border payments has been overshadowed by stablecoins that offer more stability. Ripple’s recently launched stablecoin RLUSD further supports this statement.
Ripple’s IPO plan: The video suggests that Ripple’s IPO plans weaken XRP’s relevance as the company’s stock performance threatens to eclipse the cryptocurrency.
Ripple holds large amounts of XRP: Ripple currently holds more than 38 billion XRP tokens and has been selling them to fund operations. The author believes that this centralization poses risks to the long-term value of XRP.
Ripple CTO David Schwartz responded
In response, Ripple CTO David Schwartz addressed the criticism head-on on X.
Schwartz dismissed claims that stablecoins make XRP obsolete. He explained that XRP’s unique role as a bridge currency relies on its liquidity and the ability of holders to freely buy and sell the token. This liquidity ensures that XRP remains a valuable payment asset.
Furthermore, Schwartz noted that holding XRP can simplify transactions by reducing the amount of currency exchange required. “If you don’t know which currency you’ll need next, it makes sense to hold XRP,” he said.
Schwartz also expressed doubts about predictions of XRP price movements, stressing that XRP and Stellar (XLM) generally follow similar market trends and are driven by broader factors rather than Ripple-specific developments.
Why XRP still has potential
Despite the criticism, Schwartz supports XRP’s importance in the digital payments ecosystem. For individuals and businesses working with multiple currencies, holding XRP can simplify operations, making it an effective option in complex financial environments.
While debate continues, Ripple sets sights on XRP ETF Approval. The company has been working closely with financial institutions and has submitted four XRP ETF applications so far. These efforts indicate that the proposals have a good chance of being approved by 2025.
