XRP Price And XRPL’s Rise As A Lightning Network Alternative – Analysis
Amid the uncertainties surrounding the Ripple-US SEC legal stance, the XRP community has started examining the conceivable factors that could propel XRP’s value to new heights. Recent market fluctuations, characterized by a decline of over 3.5% in the past 24 hours and a 4.1% dip over the week, have steered XRP below the pivotal $0.5 threshold.
Zach Rector Discusses Potential Catalysts for XRP’s Price Surge
Zach Rector, a prominent figure within the XRP community, has presented three pivotal events that could ignite an XRP price rally reminiscent of the surge witnessed following Ripple’s recent victory in court. Rector said that a dismissal by the US court of the SEC’s plea to appeal the XRP victory ruling would cause a significant shift in XRP’s price trajectory.
The SEC’s move to contest the ruling before the case’s natural conclusion has given Ripple renewed confidence to file a counter-appeal if the court approves the regulator’s appeal request. Furthermore, Rector believes XRP price would spike if a top US-based financial institution integrated Ripple’s On-Demand Liquidity (ODL) product.
With newfound regulatory clarity surrounding XRP, optimism runs high within the community regarding heightened adoption by US banks. This development, if realized, could wield profound influence over the price of the digital asset.
It is noteworthy that Ripple’s earlier overtures to US institutions played a pivotal role in the lawsuit, amplifying the significance of this anticipated milestone. The prospect of a settlement between Ripple and the SEC emerges as the third factor Rector opines could cause a surge in XRP price.
While Rector’s insights hold significance within the community, some members, notably Chad and Daren Black, disagree with Rector’s analysis. They assert that the true catalyst for driving higher XRP prices lies not in isolated events but rather in the digital asset’s intrinsic utility and widespread adoption.
They further argued that events like those highlighted by Rector may result in short-term market fluctuations while fundamental factors will propel sustained growth.
XRPL: A Lightning Network Alternative?
Meanwhile, famous crypto lawyer John Deaton claimed that the XRP Ledger (XRPL) is a superior alternative to Bitcoin’s Lightning Network. Recent on-chain data shows an 84% decrease in Lightning Network usage over the past 12 months and a 15% drop in capacity over the last three months.
These statistics underscore a concerning trend for the Layer 2 payment protocol. Even though XRPL (native to the Ripple Labs ecosystem) shares similarities with Ethereum, Solana, and other Layer-1 protocols, it prioritizes facilitating cross-border and digital currency remittances.
While not positioned as a direct Lightning Network competitor, XRPL is poised to claim a significant portion of the remittances market. Presently, the Spend the Bits protocol on XRPL predominantly serves users in Canada, with ambitious plans for expansion into El Salvador and other regions globally.
This strategic move underscores its commitment to establishing a formidable presence in crypto payment settlements. The discussions within the XRP community regarding potential catalysts for price growth and the emergence of XRPL as a contender to the struggling Lightning Network reflect the dynamic nature of the cryptocurrency landscape.
As the crypto market continues to evolve, the role of XRP and XRPL in the remittance market space remains a narrative worth watching closely.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
