Elevated adoption and better market consciousness of NFTs, the metaverse and Net 3.0 drove the market cap from a January year-low $736bn to a November yr excessive $3,009bn. The entire crypto market cap stood at $2,380bn on the time of writing.
Demand for alt-coins had been additionally on the rise with Bitcoin’s (BTC) dominance taking a success. BTC dominance had stood at 73.63% in January earlier than sliding to a 2021 yr low 39.56% in September. BTC dominance stood at 40.1% on the time of writing.
In keeping with CoinMarketCap, XRP is the 7th largest crypto, with a market cap of $43.77bn. XRP had sat on the quantity 3 spot for a major time frame earlier than dropping floor.
The autumn from the quantity 3 spot got here regardless of XRP surging by 319% within the yr. Others have merely performed higher, with the SEC lawsuit against Ripple Lab pinning XRP again from bigger positive factors.
Binance Coin (BNB), now ranked 3rd by market cap, is up 1,356% for the yr, with Cardano’s ADA (ranked 6th) up 691%. Solana (SOL), at the moment ranked 5th by market cap, is up by a formidable 12,764% for the yr.
XRP Strikes in 2021
In January 2021, XRP’s had fallen from a earlier yr excessive of $0.7872 to a Jan-2021 low $0.2108. Discovering assist from the broader market, XRP struck a 2021 yr excessive $1.9660 in April earlier than sliding again to $0.50 ranges.
The SEC lawsuit in opposition to Ripple Lab led to the sell-off. Late within the yr, nevertheless, hopes of a positive settlement with the SEC noticed XRP take a look at resistance at $1.00.
The SEC motion in opposition to Ripple Lab and two executives alleges that over $1.3bn was raised by means of an unregistered, ongoing digital belongings securities providing. Key to the declare is that the SEC categorised XRP as a safety. This was in distinction to ETH. In June, the SEC had said that ETH affords and gross sales will not be securities transactions. The announcement supported an ETH run to an ATH $4,868 in November.
XRP’s market cap, now sitting at $43.77bn had recovered from a Jan low $10.78bn to achieve a yr excessive $83.51bn earlier than falling again.
What’s subsequent for Ripple’s XRP in 2022?
The markets are bullish for the yr forward. A lot, nevertheless, will rely on the end result of two lawsuits.
A declare of bias in opposition to the SEC filed by Empower Oversight, a non-profit authorities watchdog, will likely be key. Empower Oversight claims that SEC officers had been biased in opposition to Ripple Lab and XRP. A verdict in favor of Empower Oversight would give the SEC extra cause to shut out the declare in opposition to Ripple Lab, which ought to favor XRP.
Such an end result to the claims may see XRP breakout from its January 2018 ATH $3.35. Some are speaking of hitting $5.00 ranges within the yr. An unfavorable end result, nevertheless, would have a devastating impression on XRP and XRP holders. Whereas torn, the markets have been extra optimistic than earlier within the yr.
Other than the outcomes of the 2 lawsuits, broader crypto market actions can even affect, nevertheless. A bearish yr for the crypto markets may see XRP fall again to $0.50 ranges. The draw back danger to the broader crypto market stays better regulatory oversight.