A crypto analyst has predicted that cryptocurrency payments company, Ripple could be the next high-valuation company, similar to Amazon and Facebook. This prediction comes as XRP witnesses poor performance amidst market volatility and Ripple’s ongoing court battle with the United States Securities and Exchange Commission (SEC).
Analyst Predicts Ripple Emerging As Billion-Dollar Start-Up
The host of the AllinCrypto YouTube channel has released a new video, underscoring Ripple’s future outlook and its ability to become a billion-dollar company. The analyst has expressed confidence that the United States will adopt Ripple as a “unicorn company” just like e-commerce and tech giants like Amazon, Apple, Facebook and Microsoft.
The analyst also disclosed that Ripple was on a similar growth trajectory as these leading companies which have contributed to the US’s burgeoning economy. He based his predictions on the crypto payment’s stablecoin plans, highlighting how US treasury members are acknowledging the importance of stablecoins within the nation’s economy.
In the YouTube video, the crypto analyst shared a recent news article by Wall Street Journal which emphasized how cryptocurrency could stave off a potential debt crisis in the US. He disclosed that treasury members were discussing the ways stablecoins could help the US maintain its global dominance, highlighting possibilities for these digital assets to solve the “colossal debt burden that the US currently has.”
Earlier in April, Ripple announced its intentions to launch a USD-pegged stablecoin, competing against established stablecoin giants like Tether (USDT) and Circle (USDC). This development aligns with the crypto payments company’s plan to expand its digital payments footprints while also strengthening its position in the US financial market.
With a growing market capitalization of more than $29 billion as of June 4, Ripple is still far behind tech giants like Amazon and Facebook which both have market capitalizations of more than $1 trillion. The crypto payments company will have to achieve a similar market valuation and widespread adoption as these tech giants before it can gain the status of a “unicorn company.”
Currently, Ripple is doing all it can to expand its global operations and services despite the declining performance of XRP, the native token of the XRP Ledger (XRPL). Additionally, its ongoing legal battle with the US SEC and the lack of regulatory clarity for digital assets in the US could potentially impede the crypto payments company growth rate.
XRP Lackluster Performance
Given the poor performance of XRP in the cryptocurrency market, the crypto analyst’s projection for Ripple to become a unicorn company may seem rather ambitious. XRP has been consolidating around the $0.5 price threshold for years, witnessing major declines even during favorable market conditions.
The cryptocurrency’s stagnant value has deeply frustrated long-term XRP investors and community members, prompting some to sell off their considerable holdings. As of writing, the price of XRP is $0.49, reflecting a 1.52% decrease in the last 24 hours and a 9.36% decline over the past month, according to CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com