XRP Poised for 3-Year Growth as SEC Eases Regulations

Investor Will Ebiefung, who ranks in the top 2% of TipRanks’ stock professionals, has shared his insights on the future of Ripple (XRP). According to Ebiefung, long-term investing can help mitigate the short-term volatility inherent in the cryptocurrency market, allowing an asset’s fundamental value to emerge over time. This strategy could be particularly beneficial for XRP, which Ebiefung believes will benefit from several growth catalysts over the next three years.

XRP, with a market cap of $148 billion and a history of growth since 2012, has shown resilience due to its real-world utility. RippleLabs, the developer of XRP, recognized early on that cryptocurrency could disrupt the $2.4 trillion international payments market, which is currently dominated by outdated systems like SWIFT. These systems are often slow and costly, with international wires taking days and costing up to $75. XRP acts as a bridge currency, allowing users to convert funds between different currencies without traditional intermediaries. Its speed and low costs set it apart from other cryptocurrencies offering similar functionality.

Ebiefung highlights several catalysts that could drive XRP’s growth. One key factor is the expected increase in crypto adoption over the next three years. The SEC, under acting director Mark Uyeda, is focusing on regulatory clarity rather than enforcement, which Ebiefung views as a positive trend. Additionally, the SEC dropped lawsuits against several major crypto companies, and Ripple CEO Brad Garlinghouse announced that the SEC had dropped its appeal in a security classification case against Ripple. This development could ease regulatory uncertainty and encourage institutional investment in XRP.

Institutional investors, such as mutual funds, pension funds, and insurance companies, could be crucial for XRP’s sustainable growth. These organizations are large and liquid, making them more likely to hold for the long term and less prone to panic-selling due to short-term price fluctuations. The prospect of XRP-based ETFs, although not yet available in the U.S., adds another layer of potential growth. Companies like Grayscale have filed to launch XRP ETFs, which could attract more investors to the cryptocurrency.

Despite the volatility and unpredictability of the crypto market, Ebiefung believes that XRP has the potential to outperform its peers over the next three years. This optimism is based on XRP’s real-world utility and the potential for institutional adoption once legal uncertainties are resolved. However, Ebiefung cautions that investors should conduct their own analysis before making any investment decisions.