The crypto rally is showing no signs it is about to slow down. Bitcoin (BTC) is regularly hitting new highs, and the incoming Trump administration appears to be packed with crypto enthusiasts. That spells good news for the sector and especially for Ripple (XRP).
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The cryptocurrency has been in the crosshairs of the SEC, which under outgoing chairman Gary Gensler, has been known for a hardline stance on crypto regulation. Shifts in personnel and policy could be a boon for Ripple as under Gensler’s leadership, XRP became the focus of a high-profile SEC lawsuit. While the court ruled in favor of XRP, the SEC is expected to appeal the decision.
In any case, ahead of Trump’s new reign, Ripple has been improving its positioning in the market and after obtaining regulatory approval last week, today (Tuesday) marks the launch of its RLUSD stablecoin. It is a traditional stablecoin, backed fully by US Treasuries, bank deposits, and cash equivalents, with a trust charter from the New York Department of Financial Services (NYDFS).
So, with things looking up for the market’s third-biggest coin, could this be the right time for loading up?
Not according to investor Johnny Rice, who is “not convinced it’s where you should put your money.” XRP’s potential, says Rice, is “overhyped and it’s currently overvalued.”
Advocates argue that as adoption grows, XRP’s value will increase because banks would need to buy it to transact. However, Rice points out that banks can use RippleNet without relying on XRP – there’s no need to accumulate or hold it. Even if Ripple becomes an industry standard, it won’t create the “supply crunch” some predict.
Supporters also point to the billions in fees banks pay annually with traditional payment systems, suggesting XRP could capture this value. But Ripple’s low fees, far smaller than legacy systems, mean even capturing the entire market would only generate hundreds of millions, not billions. With XRP’s current market cap exceeding $150 billion, Rice thinks the “best-case scenario is already baked into the price.”
Does that mean investors should abandon the crypto space all together? Not necessarily, as the OG crypto still has plenty going for it. “I would look to Bitcoin for an investment that has a real chance of beating the market for years to come,” Rice summed up. “As Jan. 20 fast approaches, Bitcoin is a much better option.” (To watch Rice’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
