Since the turn of the new year, the digital asset market has not been off to the greatest start. Despite landmark announcements taking place, the industry has not lived up to sky-high expectations issued at the tail end of 2023. Subsequently, despite the performance of Ripple thus far, we have 5 reasons why XRP could still surge in 2024.
Over the last 30 days, Ripple has seen its XRP token fall more than 15% in value. Despite renewed hope in a turnaround over the next several weeks, its performance has certainly been lackluster. However,m we provide several signs as to why a turnaround may be in the cards. Moreover, we explain how it could lead to an explosion in value for the asset as we leave 2024’s first month.
Growth in Global Partnerships
Also Read: Ripple (XRP) Eyeing 20% Gains in February Rebound?
One of the first things that require observation when discussing a possible Ripple XRP surge in 2024 is the firm’s continued growth in global partnerships. Indeed, last year Ripple Labs saw its announcement of several key partnerships. Specifically, it unveiled cooperation with the United Kingdom, Asia, and Africa.
These kinds of partnerships will only grow the Ripple brand, and bring even more activity to the companies RippleNet. Subsequently, those developments should then increase the overall value of the XRP token. Although it made significant strides forward last year, they pale in comparison to its hopes for the coming year.
Ripple is still working with various nations on CBDC development, and it received authorization from Ireland’s financial regulator to become a Virtual Asset Provider (VASP). These major developments should have massive implications for the coming year, as the XRP price attempts a bounce back.
SEC Lawsuit
Also Read: Ripple (XRP) Price Prediction: February 2024
Ripple Labs’ ongoing lawsuit with the US Securities and Exchange Commission (SEC) has dominated its presence over the last several years. However, it also gathered significant momentum heading into this year. Moreover, many believe that a conclusion is set to arrive sooner rather than later.
Significant developments occurred in favor of Ripple in three specific avenues. First, Judge Annalisa Torres ruled against the SEC’s persistent security status of XRP tokens sold on the secondary market. Secondly, the SEC lost its appeal to that decision. Finally, the SEC dropped its ongoing lawsuit against Ripple’s founder and CEO Brad Garlinghouse.
Both sides have been quiet thus far in 2024, but remedies are set to take place on the 12th of February. Therefore, many have expected an end to the lawsuit that began in December of 2020 to occur sometime shortly. Ultimately, it could propel the asset to new value.
Ripple IPO?
Also Read: Ripple (XRP): Could a Fall Below $0.50 Trigger a Turnaround?
Although it is not certain by any means, the presence of a Ripple IPO this year is a strong catalyst for an XRP price surge in 2024. Indeed, the likelihood of such a development increases with a positive outcome to the ongoing SEC trial as mentioned previously.
Ripple Labs has stated that the US regulatory environment is less than favorable. Therefore, they may not opt to look elsewhere when it comes to their hopes for an IPO. Still, the conversation has been present, and the prospects of such a move have been made public.
The potential arrival of an IPO hinges on the SEC lawsuit. Therefore, one could be quickly followed by the other. If that is the case, the price of XRP would have two major developments set to catapult it to heights that would have not been seen in 2024.
XRP Transaction Fees and Supply
Also Read: Ripple (XRP) Hangs at Pivotal $0.51 Support; Will It Hold?
Yet another reason for a potential surge in the XRP price is the transaction fees and the asset supply structure. First, XRP has an average transaction fee of $0.0014 to make a cross-border payment. That fact is a massive benefit that XRP enjoys and could make full use of this year.
Trasnactions fees are a massvei part of hte digitla asset indsutry. Even someone like Solana, known for their less than $0.001 fees, exploded by 576% last year. Therefore, Ripple can benefit if it can keep those transaction fees low. Alternatively, the price of XRP is set to benefit from the supply structure that it implores.
Similar to Bitcoin, XRP has a hard supply cap of 10 billion XRO. With every Ripple token set to be issued in May of 2027, the scarcity of the supply enhances value. Indeed, these two fundamental infrastructure realities are faces of the asset that could help facilitate the potential surge in the coming year.
Bitcoin Market Cycle
Also Read: Ripple Unveils Update To Long-Awaited XRP Ethereum Sidechain
Finally, Ripple (XRP) is set to benefit massively from the Bitcoin 4-year market cycle. Indeed, the Bitcoin halving is expected to take place in April of this year. Moreover, that development typically kicks off a year-and-a-half to two-year bull run for digital assets.
This could be vital for XRP. If history repeats itself, the Bicoinc market cycle could come into play alongside a host of other developments that could have massive implications on the price of the asset.
There is no certainty when it comes to the digital asset market, but the Bitcoin impact is almost assured. The entire industry should see a massive boost, and these other factors could align to make way for an XRP surge at some point in 2024.
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