XRP’s High Valuation Raises Questions About Its True Market Fit
The post XRP’s High Valuation Raises Questions About Its True Market Fit appeared on BitcoinEthereumNews.com.
Perhaps one of the most successful cryptocurrency post-election, XRP has shot up 370%, surging 370% from approximately $0.50 on November 5th to its current price of over $2.40. With the impressive performance, Ripple’s native coin has outpaced most major cryptocurrencies, propelling it back into the top four cryptocurrencies by market capitalization. Analysts are split on the regulatory impact of the cryptocurrency’s value and its future growth. XRP’s long-term prospects face mixed feelings among analysts. Alex Thorn, Head of Research at Galaxy Digital, is skeptical about the positive momentum. In an interview with CNBC, Thorn said that XRP lacks a clear “product market fit” and questioned its high value relative to its actual use cases. “It’s never really had a clear product market fit, despite a lot of marketing. In general, [it has] pretty low flow, [and is] trading at a huge valuation well above some major corporations,” he said, adding that optimism surrounding the incoming Trump administration is driving XRP’s price more than its underlying fundamentals. XRP @ $50? It’s apparent that the cryptocurrency market won big with Trump’s reelection. Bitcoin, the world’s largest cryptocurrency, has repeatedly established new highs post-election. On Sunday, Bitcoin surged past $106,000, up around 54% since Trump’s victory, per CoinGecko. For Ripple, the new administration is even more important given that the company is entangled in a year-long legal battle with the U.S. securities watchdog, which many believe might keep XRP’s price below $1 for an extended period. Trump’s pro-crypto stance is expected to influence how the Securities and Exchange Commission approaches crypto regulations. Matt Hougan, Global Head of Research for Bitwise Asset Management, admitted that opinions on XRP’s value and utility are sharply divided among investors and analysts. However, he defends XRP’s ability to maintain community interest throughout various market cycles. The analyst told…
Filed under: News - @ December 17, 2024 9:22 am