XRP Plays An Important Role In Crypto Market Dynamics

XRP crypto assets. (Photo; Doc. Teknobu)

JAKARTA - The XRP market continues to experience dynamics that attract the attention of crypto market players. Driven by the adoption of Ripple payment products, including On-Demand Liquidity (ODL) and RippleNet, these digital assets have shown quite interesting movement in recent weeks.

On July 13, the decision of the United States District Judge, Analysis Torres, declared the sale of XRP as non-securities. However, the decision also tied XRP's institutional sales to an investment contract, so it was safe under Howey's test.

The market response to this decision is very significant. Almost all centralized exchanges, including Coinbase Global Inc, re-registered these digital assets for trading. As a result, XRP's daily trading volume jumped sharply towards 14 billion US dollars (Rp213 trillion), and Ripple-backed XRP prices doubled from the previous price.

Even so, after making a significant profit after the Ripple case decision, XRP experienced a recent correction. According to current market data, the price of XRP is trading around Rp9,800, a decrease of more than 25 percent from this year's highest level. The average daily trading volume of XRP also experienced a drastic drop from its recent high of around 14 billion US dollars (Rp213 trillion).

John E. Deaton, founder of Crypto-law.us, explained that the main factor that triggers the XRP parabolic rally or other altcoins is Bitcoin. Deaton highlighted that in its history, every major rally in the crypto market is often triggered by half-Bitcoin events, which will occur in less than a year.

The price of XRP is supported by the adoption of Ripple payment products, such as On-Demand Liquidity (ODL) and RippleNet. In addition, the widespread use of XRP in various contexts, such as the creation of NFT and DeFi operations, also strengthens the expectations of XRP price growth in the short term.

However, there is currently a price correction that can bring XRP to the support zone between 53 and 58 cents, which was previously a significant resistance level before the Ripple case decision last month.

Ripple's role in developing CBDCs with several global central banks is also a concern. In this case, XRPL has a private chain that supports the smooth issuance and burning of stablecoins by institutional investors.

With a market cap of around 32 billion US dollars (Rp 486 trillion) and growing adoption support, XRP continues to play an important role in the crypto ecosystem, demonstrating the potential for further growth, especially through the adoption and development of innovative Ripple products.