Ripple, the well-known blockchain that went through challenging court rulings with the SEC (Securities and Exchange Commission), has finally dared to move on from the situation and bring something new to the market, announcing its stablecoin release. While the lawsuit provided important scores for both parties, it still hasn’t completely ended. On the one hand, Ripple is seeking remedies from the lawsuit that influenced its brand image, while the SEC received full authority over crypto sales to institutions.
As a result, Ripple is trying to recover what’s lost and become renowned again for its unique features and contributions to the crypto market. Hence, the company behind it is supposed to launch a stablecoin that will bring investors back and raise the XRP price. According to current XRP price prediction 2030 findings, we should expect XRP to increase by more than 5% until 2030, which might showcase the blockchains’ ability to recover in the future.
However, some fear that the latest Ripple feature will trigger additional problems with the SEC. Here’s why.
What do legal experts think about the situation?
As Ripple aims to introduce the RLUSD stablecoin, with the website dedicated to it already launched, experts believe the company will experience further legal challenges with the SEC. Some implied that Ripple might face another lawsuit soon, as the company must register it adequately in accordance with American crypto legislation, and the SEC might already be biased in targeting it.
On the other hand, Ripple users are expecting the website and the stablecoin release to showcase an end to the lawsuit with the SEC, meaning they could continue investing in it. However, several more factors will influence prices, such as the following:
- The political outcome at the end of the year because every party has a different outlook on crypto;
- The final decision from the SEC is weighted by the person ruling over the organization;
- The market condition and token use case;
The stablecoin might be the solution to Ripple’s problems
Usually, when cryptocurrencies or blockchain problems experience a bearish moment, the solution for them to rise again is to introduce something new to the market in order to add more liquidity. If we take the case of Ethereum, we can see how the shift from the PoW consensus mechanism to PoS brought the blockchain more popularity and users as it provides that it can achieve high-efficiency levels.
On the other hand, Ripple is still not as famous as Ethereum, but it provides products and services at lower prices and faster speeds, which makes it an Ethereum competitor. Ripple is unique from many perspectives, especially since it developed the first financial services platform that leverages blockchain and crypto for companies. Its centralized and decentralized blend makes it the perfect solution for Web3 adoption in the future, which is why its reliability on the market couldn’t’ be compromised.
This new technological movement can help Ripple regain its strong position on the market somewhere in 2025, as the stablecoin is supposed to be released at the end of 2024. According to the company’s website, Ripple will be subject to law approval, as its purpose will be for users to hold, buy, and trade it for payments. Since it’s a stablecoin, Ripple’s value will be tied to one USD and will be supported by the XRP Ledger and Ethereum.
Is Ripple really better than Ethereum?
Considering Ripple’s benefits over Ethereum, it seems like it should be superior in all aspects. However, these blockchains are pretty different. For example, Ethereum can operate one transaction in about 16 seconds, while Ripple’s speed makes the verification as fast as four seconds.
Ethereum is a completely decentralized business behind cryptocurrency and blockchain, while Ripple is managed by a centralized company called Ripple Labs. These projects also have different objectives. Ethereum wants to introduce full decentralization into our real world, while Ripple is currently combining centralization and decentralization to make this shift easier for users to bear.
Ethereum works based on the PoS consensus mechanism. In contrast, Ripple is based on the Federated Byzantine Agreement, a slightly different technology from PoW, which involves a selection of nodes that approve of blockchain transactions.
Ripple has significant opportunities to develop
Despite its various challenges, Ripple’s potential to become one of the greatest crypto projects in the world is massive, especially since it can pave the way towards Web3. Ripple provides plenty of benefits for companies and decentralized autonomous applications, such as the following:
- It leverages about 150 validators across the world, providing top-notch security on the RippleNet;
- It has low-cost transactions, measuring their efficiency through the drop unit;
- It scales its infrastructure by handling a massive volume of transactions without hindering the networks’ speed;
- It’s got fast transactions on a superior level compared to Bitcoin or Ethereum;
- It’s sustainable since it’s not based on expensive hardware or energy consumption;
Ripple also has numerous use cases
Besides its benefits, Ripple is actually useful for the real world, providing the following functionalities:
- On-demand liquidity towards banks in order to ensure real-time settlement and reduce the need for intermediaries;
- Cross-border payments are provided by XRP as a bridge currency for global transactions;
Considering these benefits, some banks started collaborating with Ripple to improve their operations and access a new and fresh customer audience. For example, Bank of America (BofA) has been working with Ripple since 2020 to implement proper compliance standards for international payments.
On the other hand, Standard Chartered Bank collaborates with Ripple to expand its payment services to about 50 countries. Santander Bank also uses Ripple to make cross-border payments between the US and Europe possible.
What do you think about Ripple’s future?
Ripple is one of the most innovative blockchain technologies developed in the past few years. Still, a minor mistake made it the perfect target for institutions like the SEC to infringe and push boundaries. The centralized companies are still suing the institution, and while there’s no immediate conclusion, Ripple decided to release a stablecoin and regain its popularity.
