Brad Garlinghouse, the CEO of Ripple, has emphasized the importance of considering real-world utility when investing in cryptocurrencies, amidst the popular narrative of ‘crypto is back’. The Ripple-backed digital asset, XRP, has already demonstrated a bullish breakout after Bitcoin surpassed $72,000 for the first time on Monday.
The global cryptocurrency market cap has surged to over $2.8 trillion, driven by the increasing adoption of web3 protocols and digital assets by institutional investors. This surge in crypto liquidity is expected to greatly benefit the altcoin market in the coming months.
Despite facing the SEC vs Ripple lawsuit, which is scheduled for a civil trial in the second quarter of 2024, XRP has maintained a positive outlook. Current market data shows that XRP has a fully diluted valuation of approximately $69 billion and an average daily trading volume of around $7 billion.
Ripple, a prominent web3-focused company, has devoted over $100 million to challenge the SEC’s classification of XRP as a security. Garlinghouse emphasizes the significance of focusing on real-world utility in the vast crypto market. He also predicts that the broader crypto market will follow Bitcoin’s bullish breakout once spot ETFs receive approval in the United States and the upcoming halving event takes place.
Ripple has already made substantial investments to ensure that XRP plays a crucial role in real-world utility through the XRPL smart contracts. The XRPL is expected to become a hub for tokenizing real-world assets (RWA) following Ripple’s strategic partnership with the Axelar network.
The on-chain activity of XRP has seen a significant increase due to its use in facilitating seamless cross-border payments by reputable financial institutions, alongside the adoption of Ripple’s On-Demand Liquidity (ODL). On Tuesday, over $40 million worth of XRP was transferred from various crypto exchanges, including Binance and Bitstamp, to unknown wallet addresses, according to on-chain data analysis.
Crypto whales have been accumulating XRP at an accelerated pace, withdrawing coins worth over $300 million from Binance earlier this month.
Following Bitcoin’s recent price surge above $72,000, XRP has successfully broken out of a macro-falling logarithmic trend. The latest market data shows that XRP has gained over 10% in the past 24 hours, trading around $0.69 during the London session on Tuesday.
After a successful retest of the macro breakout in the past three weeks, XRP is now aiming to surpass $1 and potentially reach $1.9, the peak of the 2021 bull rally. With increased XRPL activity backing it, XRP is likely to maintain a bullish outlook, preparing for a parabolic rally in the coming months.