Ripple’s XRP token has dropped significantly since its all time high of $3.84 that it reached in January, to its current value of $0.45 (CoinMarketCap).
Here are four things that could greatly effect the price of XRP:
- SEC declaration of its legal status
- Listing on coinbase
- Development and use of xRapid
- XRP used by SBI Holdings
SEC declaration of its legal status
The debated over whether XRP is or isn’t a security has been going on for a while and having a knock-on effect on the price.
There have been a number of lawsuits accusing against Ripple for creating XRP as a security.
To clarify the confusion revolving around the question of whether XRP is a security, Brad Garlinghouse explained that XRP cannot in any way represent a security, explaining how XRP would still exist on the xRapid network even in the case Ripple foundation seizes to exist.
Although the lawsuits are claiming that XRP was made as a security, the final decision on the matter on whether XRP is a security or not rest on the decision of SEC.
Listing on Coinbase
Coinbase, the largest cryptocurrency exchange in the U.S has recently announced that they are considering adding five new tokens on to its platform.
The five digital coins include cardano, basic attention token, stellar lumens, Zcash, and Ox.
After months of speculations and rumours, we still have no clear picture on whether XRP will be listed on Coinbase. Chances are that Coinbase will most likely stay off XRP until the SEC makes a decision about it.
Development and use of xRapid
xRapid uses XRP as a source of instant liquidity and a way to cheapen and quicken the fiat transaction
Brad Garlinghouse, Ripple’s (XRP) CEO explained in a interview to CNBC that by the end of 2019, he expects many large institutions to be using it.
“I’ve publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool,” Garlinghouse told CNBC in an interview.
The XRP token is publicly traded on cryptocurrency exchanges. If large institutions begin using the xRapid product, demand for XRP would theoretically rise given the large-scale transactions what would be taking place, increasing the price.
XRP being used by SBI Holdings
SBI will be launching a new cryptocurrency exchange, which will focus entirely on XRP. This is because the parent company of SBI Holdings has been a partner of Ripple for a number of years. Its CEO, Yoshitaka Kitao, has ben quoted as being bullish on the price of XRP, predicting a price of $10.