Background: Bitwise Asset Management released a detailed report analyzing the true driving forces behind $XRP's value, clarifying the misconception that $XRP is equity of Ripple.
Main Content: The report points out that $XRP, as a bridge currency for cross-border payments, offers advantages of high-speed and low-cost international transfers, with faster transaction speeds and lower fees than the traditional SWIFT system. Although Ripple's legal dispute with the U.S. Securities and Exchange Commission (SEC) has impacted $XRP, the July 2023 court ruling provided regulatory clarity for $XRP's secondary market sales, making it one of the few digital assets with clear regulatory status in the United States. $XRP ranks third globally in liquidity, behind only Bitcoin and Ethereum, and holds strong institutional appeal. Ripple enhanced the infrastructure of the $XRP ecosystem by acquiring Swiss custody firm Metaco. The report emphasizes that $XRP's value derives from the convergence of its utility, liquidity, and regulatory clarity, advantages that could propel its price toward $10.
Potential Impact: With regulatory clarity and ecosystem improvements, $XRP is expected to hold a unique advantage in the next phase of cryptocurrency adoption. Currently, $XRP is priced at $2.11, up 0.52% in the past 24 hours.