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Is XRP Dead in 2024? The Current State of XRP

Kane Pepi
Kane Pepi | Verified by Ilija Rankovic
Last updated: | 9 min read
Is XRP dead?

While XRP remains one of the largest cryptocurrencies by market cap, it trades at a fraction of previous all-time highs. XRP has increased by just over 1% in the past 12 months – which vastly underperforms the broader market.

So that begs the question – is XRP dead, or is there still life in this established layer-1 project? Read on to discover our XRP analysis, what the future holds, and whether we consider it a buy, sell, or hold.

Summary: Is XRP Dead?

  • XRP as a project is far from dead – it continues to form partnerships with financial institutions. It also attracts significant trading volumes and a loyal community of holders.
  • However, from an investment perspective, XRP is down 87% from 2018 peaks. It’s also produced growth of just 1% in the past year, while Bitcoin is up 105% in the same time frame.
  • XRP failed to record new heights during the 2020/21 bull cycle. This could imply that we might never see the maximum XRP price of $3.84.

What Is XRP?


XRP is a cryptocurrency that backs the Ripple network. Launched in 2012, Ripple facilitates cross-border transactions for financial institutions. Transitioning from SWIFT to Ripple provides many benefits, including average transaction speeds of 3-5 seconds. Not to mention rock-bottom fees; XRP transfers average $0.0002, regardless of the transaction size.

XRP is required when financial institutions engage in cross-currency transactions. For instance, suppose a bank in Vietnam (VND) wants to transfer funds to the UK (GBP). XRP provides a liquidity bridge for that transaction. This means the Vietnam bank doesn’t need correspondent banking partnerships, which are expensive, slow, and fraught with red tape.

What is XRP?

Put otherwise, Ripple and XRP are revolutionizing a multi-trillion-dollar industry – saving financial institutions money and time. That said, anyone can buy XRP from public exchanges and hold the coins as an investment vehicle. After all, the XRP price rises and falls like any other cryptocurrency.

The Current State of XRP


XRP is an active blockchain project with over 100 partnered institutions. Notable clients include the Bank of America, Siam Commercial Bank, Canadian Imperial Bank of Commerce, Santander, and Standard Chartered. These institutions hold XRP when cross-currency liquidity is needed. XRP’s long-term vision is to become the de facto network for inter-bank transactions.

However, SWIFT still dominates this industry. Moreover, although XRP is used for liquidity provision, its strong use case has little impact on its value. After all, banks only need to hold XRP for several seconds, before it’s sold for the receiving currency. In terms of regulatory developments, Ripple’s prolonged court battle with the SEC was partially resolved in 2023.

The SEC had alleged that XRP is a security asset, and sold to retail clients without regulatory approval. The courts partly ruled in Ripple’s favor, encouraging many US-based exchanges to list XRP. That said, the case is still ongoing, with the SEC also arguing that XRP was sold to institutional clients as an unregistered security, which violated federal securities laws.

XRP’s Price Performance in 2024


Investors should analyze recent XRP price performance when exploring the question – is XRP dead? In simple terms, XRP has vastly underperformed the wider market. This includes some of the best meme coins, with Dogecoin and Shiba Inu increasing by 84% and 127% in the past year. Many other coins had an average price increase of over 100% in the same time frame. XRP has increased by just 1 % in the same time frame.

Year-to-date (YTD) performance is even more concerning. XRP was priced at $0.57 on January 1st, 2024. Today, the XRP price sits at $0.48. This means XRP has declined by 15% in the first six months of 2024. Compare this performance to Bitcoin – which is up 47% YTD.

XRP price chart

So, are we expecting an XRP price rally ahead then? Well, neither. This isn’t to say that XRP is dead. On the contrary, current prices could represent a smart entry point. XRP has a 52-week high of $0.88, meaning a 100% upside requirement based on existing pricing levels. This scenario will require positive sentiment to return to the cryptocurrency markets, which have traded sideways for several months.

The Bullish Case for XRP: Why It Still Has Life


Still asking the question – Is XRP dead? This section explores the bullish thesis for the XRP price. Read on to learn why XRP remains popular with many long-term holders, even in bearish trends and times of strong price volatility.

SEC Lawsuit Resolution

The SEC sued Ripple in 2020, accusing it of selling more than $1.3 billion worth of XRP via an unregistered securities offering. The courts partially ruled in Ripple’s favor, confirming that XRP wasn’t sold to retail clients as a security. This was a landmark moment for Ripple and the broader cryptocurrency industry. The ruling saw the XRP price increase by over 75% in just one day.

XRP was listed by several tier-one exchanges after the announcement, including Coinbase and Gemini. The SEC vs. Ripple court battle isn’t over, though. The court must still determine whether Ripple sold unregistered securities to institutional clients. A successful verdict will likely impact the XRP price positively, so investors are advised to keep a close eye on case developments.

Potential as World Bridge Currency

Some analysts claim that XRP could become the world’s bridge currency. It provides liquidity for cross-currency transactions that would otherwise require correspondent banks.

How does XRP work?

Here’s an example of how it works:

  • A bank in Thailand wants to transfer $1 million worth of Thai baht (THB).
  • The receiving bank is based in Canada, which only holds Canadian dollars (CAD).
  • The Thailand bank uses THB to purchase $1 million worth of XRP.
  • The XRP is almost instantly sold for CAD and transferred to the Canada bank.

The above transaction is fast and cost-effective. According to Ripple, its average transaction cost is just $0.0002. What’s more, most transactions are settled within 3-5 seconds. This is a game-changer for financial institutions. After all, using the SWIFT network can take 3-5 days, attract high transaction fees, and require significant red tape.

If Ripple establishes institutional partnerships that involve the usage of XRP, we could witness another strong XRP price rally ahead.

Discounted Entry Point

We mentioned earlier that XRP’s 52-week high is $0.88. Its all-time maximum price is $3.84. However, today, XRP trades for just $0.48. The current price represents a 50% discount based on the 52-week peak. And an 87% discount from the 2018 all-time high.

Therefore, now could be a great time to buy XRP at an attractive entry point. Even without any technological or regulatory developments, an increase in broader cryptocurrency sentiment could encourage a positive XRP price spike.

What is the XRP supply?

  • The maximum XRP supply is 100 billion.
  • Currently, approximately 55.6 billion XRP is in the circulating supply.
  • This means more than 44 billion XRP is currently held by Ripple, and will eventually enter the market.

The Bearish Argument: Why XRP Is Dead

This section explores the bearish thesis for XRP price, as well as its prospects as a project. This will help you answer the question – is Ripple dead?

Continued Regulatory Pressure

We’ve established that Ripple’s court battle with the SEC is still ongoing. The focus is now on unregistered institutional sales. A negative outcome could have a major impact on the XRP price.

In addition, an SEC victory could encourage US-based exchanges to de-list XRP. This would amplify XRP’s downfall – both in terms of its future price and future partnership prospects. Investors should build these risks into the investment thesis.

Decreased Market Cap

The biggest concern for XRP investors is its continued price decline. Especially when compared to its all-time high of $3.84, which was reached in early 2018. Although many large-cap projects witnessed significant losses after the 2017 bull market, many have since recorded new all-time highs. This has prompted analysts and forecasters to tone down their XRP price prediction a degree or two.

For example, Bitcoin peaked at $20,000 in late 2017. It hit lows of about $3,300 in 2019. Fast forward to 2021 and Bitcoin surpassed $68,000. Some of the best altcoins on the crypto market saw similar price cycles, including Ethereum and Litecoin. However, XRP peaked at $1.55 during the 2021 bull run – almost 60% below its all-time maximum price.

More Advanced Competition

Ripple has a proof of concept; its payment network is being used or tested by over 100 financial institutions. Multiple case studies show that Ripple saves money, improves efficiency, and reduces transaction times – all by considerable amounts.

However, Ripple isn’t the only blockchain network that can facilitate fast and low-cost payments. In reality, the sending bank buys XRP with their preferred currency. That XRP is sold for the receiving bank’s preferred currency and transferred accordingly. As such, Ripple’s liquidity bridge system could be replicated by other projects.

Decentralized finance (DeFi) networks could also compete with Ripple – especially from a consumer perspective. DeFi enables users to transact on a peer-to-peer basis. Meaning – they don’t need to use traditional financial institutions when sending and receiving funds.

Is XRP a Good Investment in 2024?


Overall, XRP is a quality blockchain project with a solid use case. Its underlying network – Ripple, serves banks and financial institutions. It enables them to transfer funds across borders in seconds with considerably low fees.

XRP provides cross-currency transactions with almost instantly liquidity – so those using the Ripple network have a reason to hold it. However, XRP as an investment product is another story. Its all-time high of $3.84 was reached in early 2018 – meaning the prior bull market failed to record new peaks.

So, will XRP price ever catch up to the other cryptocurrencies’ growth, and what does the XRP price analysis say? The fact is that XRP has underperformed most cryptocurrencies in recent times, too. For instance, Bitcoin and Ethereum have increased by 105% and 80% in the past year, respectively. XRP price maintained its levels, rising by just 1% over the same period. This is why some analysts claim that XRP is dead. So, is XRP a good investment? In our view, better opportunities can be found with other cryptocurrencies.

Conclusion


In summary, we’ve taken a deep dive into the question – is XRP dead? While the Ripple network continues to attract new banking and institutional partners, this hasn’t been reflected in the XRP price. Today, XRP trades 87% below 2018 prices.

Those considering an XRP purchase might be wise to explore other opportunities. XRP could see gains in the short and long-term horizon, but a return to all-time highs is unlikely. Ultimately, investors should conduct their own research to make an informed decision.

FAQs

Is XRP ever going to recover?

XRP would need to increase by 700% to recover its all-time high price. Most analysts believe that this is unlikely – especially considering the increased circulating supply.

Does XRP have a future?

XRP does have a future, considering it’s the bridge currency for the Ripple network. Whether this translates to increased price performance remains to be seen.

Will XRP lose its lawsuit against the SEC?

XRP partially won its lawsuit against the SEC in 2023, with the court ruling that unregistered securities weren’t sold to retail clients. However, the court has yet to decide whether unlawful sales were made to institutional investors.

Is XRP worth holding?

XRP hasn’t recorded a new all-time high since early 2018 – meaning the long-term thesis is concerning. Other cryptocurrencies could represent a better investment.

References

  1. XRP Price Data (CoinMarketCap)
  2. XRP Ledger: Built for Business (Ripple)
  3. Ripple Labs notches landmark win in SEC case over XRP cryptocurrency (Reuters)
  4. XRP soars 75% after judge rules for Ripple, Coinbase shares up 24% (Fortune)
  5. Ripple helps Siam Commercial Bank drive innovation with instant cross-border remittances (Ripple)

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