Like many other cryptocurrencies, the price of XRP has declined this year. The token’s price has decreased by fifty percent since the start of 2022, which is not surprising given its position given the general decrease in the crypto marketplace. XRP is still a desirable option for investors in spite of the decline. The prospect of the coin’s value increasing grows more optimistic as the year goes on.
The cryptomarket state
With numerous use cases for both users who need cryptocurrency-specific features and investors looking for income, the XRP coin has solidified its position as the industry basis in the cross-border payments market. The SEC case might be resolved. Over the past 18 months, the lawsuit between the US Securities and Exchange Commission (SEC) and Ripple Labs, a California-based developer of XRP, has been a significant setback.
The SEC may later classify digital assets as securities, which could have profound effects on the market. The hope that Ripple would prevail in this legal dispute was revived last week. The United States District Court for the Southern District of New York received a separate motion from the parties requesting a summary judgment.
When a party thinks the evidence is strong enough to support a decision without a trial, these decisions are made. Additionally, the management of Ripple asserts that the SEC has failed to provide evidence to support the designation of XRP as a safety.
It is uncertain when the SEC lawsuit will be decided. Investors in XRP are still upbeat, though. A CFTC visit increases the likelihood of successful classification. Ripple Labs appears to be in discussions with a different financial watchdog while combating the SEC for the top XRP categorization.
The spotlight is on energy use
The cryptocurrency marketplace has been alerted to its contribution to climate change for more than a year. Ripple, however, wants to alter the story. Ripple Labs announced earlier this week that it had joined more than 375 businesses in pledging to combat climate change. The market will probably continue to prioritize energy consumption. The switch to Proof of Stake system was recently finished by Ethereum. Ripple wants to lead this conflict and maintain an advantage.