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Sunday, July 21, 2024

We Asked ChatGPT if XRP Will Be a Top 3 Crypto in 2024 if Ripple Wins SEC Case

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TL;DR

  • Ripple vs. SEC: In 2023, a judge ruled that XRP’s secondary sales aren’t investment contracts, boosting its price.
  • XRP’s Rank: Despite the court’s positive stance, XRP remains outside the top 3 cryptocurrencies by market cap.
  • Future of XRP: Its rank depends on adoption, market dynamics, competition in payment solutions, and macroeconomic trends.

Ripple v. SEC Lawsuit So Far

Ripple’s case against the United States Securities and Exchange Commission is a landmark one for the cryptocurrency industry as it looks set to establish important precedents that may have a serious impact on crypto-focused regulations in the future.

The lawsuit was filed in late 2020 when the SEC alleged that Ripple conducted an unregistered offering of securities, essentially claiming that XRP constitutes an investment contract.

This has put a damper on XRP’s price, mostly because investors are worried about its regulatory status. However, in July 2023, the presiding judge – Analisa Torres – ruled partially in favor of Ripple. The court determined that secondary sales of XRP do not constitute an investment contract. This meant that exchanges that had previously delisted it for trading were now in the clear and re-listed it immediately. The price exploded.

You can find more details in our short video on the matter:

That said, it’s also worth noting that XRP hasn’t been a part of the top 3 largest cryptocurrencies by means of total market capitalization for a while.

So, we decided to poke the artificial brains of ChatGPT on the matter and see if it could make it back next year, provided Ripple wins the lawsuit against the SEC.

Four Factors to Consider

ChatGPT said that there are at least four factors to keep in mind when it comes to XRP reclaiming its spot in the top 3 cryptos.

The first one is utility and adoption:

One of XRP’s value propositions is its use in Ripple’s payment solutions like xRapid (now known as On-Demand Liquidity). For XRP to be in the top 3, significant adoption of these solutions by banks and financial institutions would likely be a factor. Real-world use cases can provide strong support for a cryptocurrency’s value.

Additionally, ChatGPT said that overall market dynamics could impact XRP’s performance, arguing that “other cryptocurrencies in the top 3 might experience their own catalysts for growth.”

This makes sense. Currently, the fourth-largest coin is BNB, and Binance is also amidst a lawsuit with the Securities and Exchange Commission. A victory for the company might push BNB higher, making it more challenging for XRP to surpass it.

The competitive landscape, in general, is a consideration that ChatGPT thinks will influence XRP’s performance:

The space for cross-border payments and remittances is not only targeted by Ripple. Other blockchain solutions and even traditional financial systems are also aiming to improve and compete in this space.

Last but not least, we have the overall macroeconomic factors to keep in mind, which could also impact the cryptocurrency industry as a whole.

We’ve also prepared a video on the subject of how high XRP can go in the next bull market that you can check out here:

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