Ripple XRP (CCC:XRP-USD) has a price of $0.6191 and a market capitalization of $28.217 billion. This makes it the world’s six-largest cryptocurrency. Although very impressive, the altcoin once held the third spot on the top 10 cryptocurrencies based on market cap. So, it certainly has a lot a bit of steam.
Despite the intense legal battle, Ripple continues to offer new use cases for its XRP Ledger, with the most recent being the tokenization of assets. Please make no mistake about it; the main factor driving the digital asset’s price support is a community of loyal and devoted cryptocurrency traders. But these upgrades certainly do not hurt its cause.
After delisting the cryptocurrency from several US-based crypto exchanges, the XRP token went down to around $0.13. But crypto whales jumped in to buy the dip and pumped the prices aggressively. On April 6, XRP rose above the $1 price for the first time since January 2018, despite the SEC case breathing down its neck.
The ongoing correction of the cryptocurrency market pushed down the XRP prices again. It is down more than 66% than its peak in April. As the market-wide bull run seems to be slowing down, now is the right time to invest in this one.
Plenty of Reasons to Buy XRP
Ripple is a currency exchange, real-time gross settlement system, and remittance network. Its native cryptocurrency is XRP, and its network is called RippleNet. Its products are used for payment settlement, asset exchange, and remittance systems functioning like SWIFT.
Instead of using the blockchain mining concept, the Ripple network utilizes a unique distributed consensus mechanism to authenticate transactions in which participating nodes verify the authenticity of a transaction by conducting a poll. This enables almost instant confirmations without a central authority, making Ripple faster and more reliable.
Also, the XRP consensus system uses less energy than Bitcoin (CCC:BTC-USD), which is considered an energy hog. One Bitcoin transaction takes 1,544 kWh to complete, or the equivalent of roughly 53 days of power for the average U.S. household.
Due to the complex nature of mining used in the cryptocurrency, Bitcoin transaction confirmations can take anywhere from seconds to over 60 minutes and are associated with high transaction costs. XRP transactions are confirmed around four to five seconds at a much lower cost.
Update on The SEC Case
For the last few months, XRP prices mostly reflect the ongoing case between Ripple and the SEC. The latest development is that the agency has decided to go ahead and schedule a telephone conference on July 15 to discuss the U.S. Securities and Exchange Commission’s motion to quash the deposition of former SEC exec William Hinman.
Ripple is encouraging Hinman’s deposition despite the SEC’s continuous pleas to quash it. Ripple has also been chasing the SEC to obtain documents regarding Bitcoin and Ethereum (CCC:ETH-USD) that block them from being classified as securities. In fact, in 2018, Hinman publicly said BTC and ETH should not be considered securities due to their inherent decentralization.
The case has taken various twists and turns, with many surprising wins for Ripple. But if you decide to invest in this one, you have to understand that this case will play a major part in where XRP heads within the near future. So far, it looks like Ripple is mounting a solid defense. But the risks remain.
XRP Is Worth the Risk
XRP is worth your money in terms of investment at current rates. As a first-mover in cross-border payment solutions, XRP created a system that can facilitate transactions in a decentralized manner partnering with mission-driven financial inclusion organizations.
The billions of transactions these institutions execute daily will ultimately help in pushing XRP prices higher.
Despite the lawsuit, Ripple has returned investors 174.24% year-to-date (YTD). It is closely associated with several banks, investment companies, and organizations worldwide. If you invest with a long-term perspective, you stand to make a nice return on this asset.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan does not directly own the securities mentioned above.