Bitrabo Editorial
In the constantly changing landscape of cryptocurrency, many digital currencies are thought to exhibit traits of a speculative bubble, which leads to doubts about their value stability. Nevertheless, an expert in the field has suggested that XRP’s value remains strong and untainted by the speculative pressures commonly faced by other cryptocurrencies.
Is XRP More Reliable Than Leading Cryptocurrencies?
XRP has been showcasing its considerable role within the cryptocurrency market, and crypto enthusiast SMQKE recently shared insights on the key attributes that contribute to the altcoin’s sustained value in a commentary.
The expert asserts that XRP is less prone to speculative bubbles affecting other digital currencies such as Bitcoin (BTC) and Ethereum (ETH), backing this up with a document reference.
The document stated:
It was determined that macroeconomic changes did not significantly affect XRP’s value, and fluctuations in Bitcoin’s price did not have a notable impact on XRP. Fry (2018) utilized a rational bubble model on cryptocurrencies and identified bubbles in Bitcoin and Ethereum, yet found no bubble in XRP.
A speculative bubble occurs when market prices are primarily influenced by investor excitement and expectations for future price increases instead of the asset’s intrinsic value.
SMQKE pointed out that since 2017, Ethereum and Bitcoin have been involved in a speculative bubble driven by substantial price manipulation and misleading centralized practices. In contrast, XRP does not experience this bubble due to its technological stability.
This perspective indicates that XRP’s price is not swayed by market hype strategies since its value is founded on its practical applications, particularly in international transactions and institutional finance. “XRP’s price increases will stem from genuine growth and network utilization,” he emphasized.
Additionally, SMQKE referenced a prior post, arguing that Bitcoin and Ethereum are not as “decentralized” as commonly perceived, which further strengthens the resilience of XRP.
A Potential 2017-Like Bullish Surge Ahead for XRP
After a short positive shift in the market, XRP is garnering multiple optimistic forecasts regarding its near-term potential from various cryptocurrency analysts. Expert Pharaoh has forecasted an upcoming bullish trend reminiscent of 2017 for the altcoin this year.
Pharaoh noted that in the wake of the Bitcoin Halving event in July 2016, XRP’s price began to climb in 2017, leading to a remarkable bull run peaking at its all-time high. He believes that after the next Halving in 2024, XRP is primed to initiate a similar upward trend, potentially starting by December.
Nonetheless, Pharaoh anticipates that a significant surge for the altcoin will occur following the resolution of the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). “A strong conclusion to 2024 is probable, supported by substantial fundamental and technical momentum entering 2025,” Pharaoh added.