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- A crypto analyst who has been a long-time critic of XRP has taken a U-turn, predicting a bullish run for the asset.
- His reasons are linked to three main factors including the increasing demand for XRP in response to the CBDC popularity.
One of the few industry key players and analysts known for being ill-disposed towards XRP is Crypto Educator and Analyst VirtualBacon. On multiple grounds, the analyst has criticized the digital asset for its underperformance and centralization. Today, VirtualBacon has shifted his stance in a new post, claiming XRP could be the best performer in the next bull run while taking a dig at some of the large-cap assets.
I hated $XRP for years for its centralization and bad price performance. But now I truly believe $XRP will be one of the best performers in the next bull run. Most other large caps are either becoming irrelevant or have already pumped.
The sudden change of mind is attributed to three main reasons. Firstly, the analyst has observed that the asset has not retested its all-time high price of $3 for five years now. Within the period, the asset has recorded two cycles of price suppression. Another reason is its tokenomics which has proven to be in good shape.
Tokenomics proved to be ok since 70-80% relocked in escrow in the last 3 years, Ripple didn’t dump like I feared.
It can be recalled that Ripple introduced the escrow system in 2017 to put 55 billion XRP in locks. According to the report, the 55 billion XRP was split into 1 billion XRP each in escrow to be released every month. The plan is to control supply, ensure stability and predictability.
Right after unlocking 1 billion XRP this month, Ripple announced to be returning 800 million XRP to its escrow wallet. This indicates a complete focus on token management.
Finally, VirtualBacon admitted to having seen a continuous increase in demand for the asset in the wake of the increasing Central Bank Digital Currency (CBDC).
Some XRP Performances This Year
It is important to note that XRP-related Assets Under Management (AUM) has recorded a 127 percent surge this year. On top of these factors, XRP is the only crypto apart from Bitcoin to have regulatory clarity in the US. This sets it up for institutional interest and groundbreaking partnership deals.
Following its partial victory against the US Securities and Exchange Commission, several crypto exchanges have announced their decisions to relist it for trading, boosting liquidity. Soon after the court ruling, XRP nearly doubled its value to hit $0.93 but has since been in a constant decline, currently trading at $0.520088. In the last seven days, the asset has fallen by 17 percent.
According to analysts, the recent fall is due to the SEC’s decision to appeal the ruling. Some investors also took a cue from the Terraform Labs and SEC lawsuits. Judge Jed Rakoff from the Southern District Court of New York rejected the attempt of the blockchain company to dismiss the lawsuit, overturning the prior decision made by the US District Judge Analisa Torres on the Ripple vs SEC case.
In the past 30 days, XRP has fallen by 29 percent and has recorded a far lower market sentiment. The asset currently has to make an 84.65 percent run from the current price to equal and overtake its all-time high price.
