- Ripple recently published its Q1 report, leading analysts to make bold predictions about the future of XRP, including a looming new all-time high.
- One analyst says that in the near future, Ripple’s upcoming stablecoin will take up a significant chunk of the USDT market as Tether continues to struggle with regulators.
Ripple published its first quarter market report recently, breaking down major milestones for the company and XRP in the first three months of the year. As Crypto News Flash noted, the report was positive, including increases in trading volume and new features for the XRP Ledger (XRPL). Since the report was published, analysts have been breaking it down and sharing insights into what it means for the future of Ripple and the XRP community.
According to one analyst, one critical insight is that Ripple is shifting away from depending on XRP as its main income stream. The company makes programmatic sales of the tokens held in escrows every quarter to sustain operations and development of the XRPL ecosystem, including partnerships with payments market participants. Some have criticized the model, which they allege stresses the token’s market, although Ripple has brushed such allegations aside.
But, according to Bearable Bull, a popular analyst with over 300,000 followers on X, the shift from token sales will likely be part of a settlement agreement with the SEC in the ongoing lawsuit. The agency has been hammering down on the token sale model since filing the lawsuit years ago.
Battling With Tether For Stablecoin Supremacy
The analyst notes that the upcoming stablecoin will be a key part of Ripple’s business moving forward. As Crypto News Flash reported, Ripple intends to launch the stablecoin later this year. It believes that thanks to market connections and regulatory clarity, especially after the conclusion of the SEC lawsuit, it’s better equipped than most firms to handle such a token.
The stablecoin will be especially important if Ripple wants to shift from XRP sales being its primary income stream. Tether, for instance, made $2.85 billion in the last quarter of last year from US Treasury bond interests and a rise in the prices of the gold and BTC it holds in reserves.
Tether is a low-hanging fruit for Ripple’s stablecoin. The company, whose USDT stablecoin boasts a $111 billion market cap, continues to dominate the market ahead of USDC and DAI, which follow suit. However, it continues to be targeted by regulators for its unethical practices and has been found guilty and settled quite a few times.
However, before going after Tether’s market, Ripple will have to navigate the SEC’s claims that the stablecoin is an unregistered security offering, as Crypto News Flash reported.
The analyst adds that custody solutions will be yet another income stream for Ripple. Last year, the company bought Metaco, a Swiss-based crypto custody firm, for $250 million. This could set Ripple up to become a major player in the crypto custody market.
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