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April 4, 2022

Is XRP a Good Investment in 2022?

April 4, 2022

With the crypto markets in a state of flux, it can be tricky to know whether you should invest in XRP in 2022. After halving in value from its 2021 high, what is Ripple’s price prediction for 2022 and beyond?

The price of Ripple’s XRP rose by approximately 300% in 2021 and is currently ranked as the world’s sixth largest cryptocurrency with a market cap of $40 billion.

Ripple has seen a 15,000% rise over the past half-decade alone after its launch in 2012.

What are Ripple and XRP?

Ripple is a company that hosts an open-source platform aimed at offering a safer, faster, and more energy-efficient method of making cross-border payments than the existing global payment infrastructure.

XRP is Ripple’s token and it relies on the Ripple blockchain to execute transactions in a matter of seconds. 

The company boasts a presence in 55 countries and is the only enterprise blockchain company with products that are used by over 300 financial institutions.

SWIFT vs Ripple

Ripple’s pre-existing rival, SWIFT (Society for Worldwide Interbank Financial Telecommunications) currently takes days to execute transactions.

With Ripple offering nearly instantaneous transactions and lower costs, RippleNet could eventually replace SWIFT’s infrastructure altogether. However, this does not mean that Ripple has been free from setbacks in its meteoric rise.

In August 2021, SWIFT launched a service to rival Ripple’s immediate transaction rate called Go. Go customers can transfer money within a matter of seconds, which reduces one of Ripple’s biggest advantages. 

SEC vs Ripple

In December 2020,  Ripple and two of its executives were faced with a lawsuit from the SEC for allegedly raising 1.3 billion USD through an unregistered security. MoneyGram, an integral cross-border payment company in which Ripple had a 30% stake, ceased to execute transactions with Ripple once the lawsuit was declared.

XRP’s key defense lay in its contestation of the cryptocurrency’s classification as a security. Given that Ethereum is not classified as a security, many expected XRP to be treated in the same way. The SEC however argued that Ethereum operates in a decentralised manner which accounts for its non-security status.

Like Ethereum, XRP also operates in a decentralised manner, which raised concerns about the bias inherent within the sudden scrutiny of Ripple’s operations. Ripple was not given notice that it was in violation of any securities regulations given that the SEC had not declared its security status. Recently, the SEC admitted that XRP’s status as a security had not been confirmed prior to the filing of the lawsuit.

The case is still ongoing. Should Ripple win, this would be a big victory for the blockchain industry as a whole – less scrutiny from the SEC would enable the technology to advance with less outside intervention. However, if the SEC were to win, they could go on to intervene in the digital currency space more than before.

The legal battle between SEC and Ripple continues to loom large over the token. On March 24th 2022 the court ruled in favour of the SEC, granting them an extension to submit a discovery schedule. 

XRP Price Prediction 2025

While it’s difficult to predict with certainty how XRP’s price will perform in the future, many experts believe that it has strong potential for growth. Factors such as its unique technology, growing popularity, and increasing adoption by financial institutions suggest that XRP could continue to rise in value over the next few years. However, it’s important to note that the cryptocurrency market can be unpredictable, and there’s always a risk involved in investing in any asset. Therefore, it’s important to conduct thorough research and analysis before making any investment decisions.

Looking at what crypto experts are saying, this seems to be highly unlikely. Digital Coin and Wallet Investor say that by 2031, the coin will be valued at around $3.

On the other hand, coinquora.com is a bit more optimistic, claiming that XRP will reach $5 by the end of 2023 and if the platform experiences several partnerships and integrations around 2024 it might even spike and reach around $15. You should keep in mind that these are all speculations and should be taken with a pinch of salt.

However, the SEC vs Ripple court case will most definitely leave a huge impact on XRP’s future. It is also important to keep in mind that no one can really know what the future will hold for any asset, especially for a cryptocurrency such as Ripple due to its naturally volatile nature. 

Should you invest in XRP in 2022?

When it comes to performance, while SWIFT’s Go is catching up with Ripple in terms of speed, Ripple still offers a competitive transaction rate of about $0.0002/transaction, which SWIFT is yet to rival. 

XRP’s ledger also offers scale and is currently capable of executing 1,500 transactions per second.

Lastly, XRP is one of the most eco-friendly cryptocurrencies in existence, consuming negligible amounts of energy when compared to Bitcoin and Ethereum.

A clear upside to investing in XRP in 2022 is the price prediction that the token will continue rising gradually in 2022.

While the regulatory disputes are impossible to ignore, until a verdict is reached, it is important to remember that no cryptocurrency investment is completely risk-free and there may be a significant upside for XRP if the dispute ends in Ripple’s favour.

Taking all things into consideration, it may be worth allocating a portion of your portfolio to XRP but you would be wise to not place all your eggs in the XRP basket. 

How to buy XRP

You can buy XRP in a matter of minutes. All you need to do is register with xcoins.com and verify your identity. We aim to review your profile within just 15 minutes. 

Then, simply place your order by selecting Ripple from the dropdown menu, entering the amount you’d like to buy and choosing your payment method.

The next step is entering your Ripple wallet address and pressing Complete Payment. Your Ripple coins will be with you shortly. 

Xcoins.com makes the payment process easy, offering payment by debit or credit card, via SEPA bank transfer for EU residents, as well as Faster Payments bank transfer for selected countries. 

Screenshot from Xcoins' Homepage showing the currency conversion from USD to XRP

As always, this article does not constitute financial advice and you should be sure to do your own research and consult a professional financial advisor before making any investment decision.

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Frequently Asked Questions (FAQs)

What is Ripple & XRP?

Ripple is an open-source developer platform aimed at offering a safer, faster, and more energy-efficient method of making cross-border payments. XRP is Ripple’s token and it relies on the Ripple blockchain to execute transactions in a matter of seconds. 

What is happening with the court case SEC vs Ripple?

The legal battle between SEC and Ripple continues to loom large over the token, and on March 24th 2022 the court ruled in favour of the SEC, granting them an extension to submit a discovery schedule. 

What is XRP’s price prediction for 2022?

Experts are suggesting that XRP will see a gradual price increase over the year 2022. The average price prediction is between $1 and $1.60.

Will XRP reach $10 by 2025?

This seems highly unlikely at the moment. Most experts are predicting a price of $3 for 2025.

Should you invest in XRP in 2022?

Yes, it seems that you should allocate a portion of your portfolio to XRP. This is due to Ripple’s competitiveness when compared with SWIFT, as well as the prediction that XRP’s price will continue rising further.

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