Ripple recently made a breakthrough after winning a legal battle against the U.S. Securities Exchange Commission (SEC). However, market analysts note that the win has not translated to a surge in XRP’s value. Coinmarketcap data reveals that XRP is currently trading at $0.4284.
XRP is facing a slump amid the market crisis. The price decline comes despite Ripple’s latest win against the U.S. Security Exchange Commission (SEC) where Judge Torres clarified that XRP cannot be considered a security. XRP was one of the tokens being investigated by the regulator for being an unregistered security.
Ripple’s CTO breaks silence on token’s price
David Schwartz responded to an XRP influencer tweet expressing his views on XRP’s price decline below $0.40.Schwartz focused on the token’s utility aspect by adding that the current price enables users to acquire enough XRP to facilitate transactions despite the market price.
https://twitter.com/JoelKatz/status/1809097926020640899
The CTO’s comment emphasized XRP’s inefficiency and reduced value as a payment option due to the high transaction fees. The industry still questions XRP’s practical use despite its legal clarity. They added that the high transaction fees deter its widespread adoption.
After Judge Torres’ ruling last month, XRP is said to be one of the few tokens enjoying a clear legal status. According to the California ruling , Ripple did not contravene any federal security laws by issuing the XRP token without registering it as a security with the SEC.
Data indicates that XRP continues to struggle to recover despite the legal clarity. Friday’s decline marked an 89.1% drop from its all-time high of $3.84.The drop sparked conversations within the crypto community, and the uproar reportedly caught Ripple’s CTO’s attention.
XRP community remains divided
Community members have reportedly remained hopeful despite XRP’s market slump. X user, Brett Hill, who is a Bitrue ambassador, said investors should take advantage of this opportunity to buy the dip. Citing one of Brett’s posts where shilling XRP , “In times like these it’s important to stay grounded and view dips as rare opportunities to accumulate.”
Hill’s sentiments echo those of other community members who believe that market turbulence will translate to long-term gains. Some analysts have also affirmed the community members’ views. They pointed out that historical patterns suggest significant dips are often followed by substantial gains.
Others remained skeptical due to the recent downtrend and high transaction fees. Investors highlighted that legal victories such as the one experienced by Ripple in California often lead to market gains. They reported that the practical challenges of XRP as a mode of payment have greatly undermined the legal victories.
Cryptopolitan reporting by Collins J. Okoth
