The cryptocurrency community has witnessed a notable shift in sentiment as a prominent crypto educator and analyst VirtualBacon, known for his skepticism towards XRP due to its centralization and perceived underperformance, has now expressed optimism about the coin’s potential to outperform most large networks in the imminent bull run.
A Change of Heart: From Contempt to Optimism
In a surprising reversal, VirtualBacon has shifted its stance on XRP, acknowledging its potential to excel in the next market upswing. Previously vocal about his reservations concerning XRP’s centralization and price performance, the analyst now predicts that XRP could emerge as one of the standout performers in the upcoming bull run. He emphasized that while many other large-cap cryptocurrencies are losing relevance or have already experienced significant price surges, XRP’s dynamics position it for a more promising trajectory.
Three Key Factors Underpinning the Shift
VirtualBacon offers three primary reasons for his newfound optimism regarding XRP’s prospects. He points out that XRP struggled to return to its all-time high for five years, enduring two cycles of price suppression. However, despite these challenges, the coin has displayed resilience and potential for future growth. Additionally, VirtualBacon notes that XRP’s tokenomics have proven stable, with a substantial portion (70-80%) of the tokens relocked in escrow over the past three years, avoiding the feared market-dampening effects of massive token dumps.
Furthermore, VirtualBacon acknowledges Ripple’s strategic move to lock away 80% of its 1 billion XRP in escrow, which it recently released. This escrow mechanism, implemented in 2017, contributed to supply control, predictability, and ecosystem stability, aligning with investor expectations and boosting XRP’s growth trajectory.
Increasing Demand Amidst Advancing CBDCs and Investor Interest
VirtualBacon’s bullish perspective on XRP is further fueled by the ongoing advancements in central bank digital currencies (CBDCs), with a particular mention of the FedNow Service offered by the Federal Reserve. The analyst anticipates continuous growth in demand for XRP and other cryptocurrencies due to the proliferation of CBDCs and initiatives like FedNow. However, he notes that the Federal Reserve has not officially announced any decisions regarding a CBDC, and any such move would require legal authorization.
Moreover, VirtualBacon highlights the surge in investment focus on XRP-related assets under management (AuM), experiencing a 127% increase this year and constituting 12% of the total AuM. The recent favorable ruling in the Securities and Exchange Commission (SEC) case against Ripple Labs, differentiating XRP from securities, has catalyzed investor interest. Despite this, the SEC’s intention to appeal the decision introduces new uncertainties to the landscape.
Current State and Prospects for XRP
Presently, XRP’s price reflects broader market trends, trading below 60 cents after experiencing a rally to 84 cents following the court’s rejection of most of the SEC’s allegations. VirtualBacon’s recalibrated outlook positions XRP as a potential standout performer in the next bull run, leveraging its unique dynamics, tokenomics, and the evolving landscape of CBDCs and investor sentiment.
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