2021 was a particularly bullish year for Ripple’s XRP and the broader crypto market. A number of major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), hit all-time highs late in the year.
Increased adoption and increased market awareness of NFTs, the metaverse, and Web 3.0 drove market capitalization from a January low of $736 billion to a November high of $3,009 billion. The total cryptocurrency market capitalization is $2380 billion at the time of writing.
The demand for altcoins has also been on the rise with the dominance of Bitcoin (BTC). BTC dominance reached 73.63% in January before dropping to a 2021-year low of 39.56% in September. BTC dominance is at 40.1% at the time of writing.
According to CoinMarketCap, XRP is 7y The largest cryptocurrency, with a market capitalization of $43.77 billion. XRP sat in third place for a long period of time before losing ground.
The drop came from third place despite XRP’s up 319% on the year. Others simply did better, with the SEC’s lawsuit against Ripple Lab leading to XRP returning from significant gains.
Binance Coin (BNB), ranked third nowresearch and development In terms of market capitalization, it’s up 1,356% for the year, with Cardano’s ADA (6th place).y) 691%. Solana (SOL), currently ranked 5thy In terms of market capitalization, it is up an impressive 12,764% for the year.
XRP Moves In 2021
In January 2021, XRP fell from the previous year’s high of $0.7872 to its January 2021 low of $0.2108. Finding support from the broader market, XRP reached its 2021 high of $1.9660 in April before easing back to $0.50 levels.
The SEC lawsuit against Ripple Lab led to the sell-off. Late in the year, however, hopes for a favorable settlement with the Securities and Exchange Commission (SEC) saw XRP tested resistance at $1.00.
The Securities and Exchange Commission (SEC) lawsuit against Ripple Lab and two executives alleges that more than $1.3 billion has been raised through an unregistered and ongoing offering of digital assets. The key claim is that the Securities and Exchange Commission has classified XRP as a security. This was unlike ETH. In June, the Securities and Exchange Commission stated that ETH offers and sales are not securities transactions. The ad bolstered ETH surges to A$4,868 in November.
The market capitalization of XRP, which now stands at $43.77 billion, has recovered from a January low of $10.78 billion to reach its highest level of the year at $83.51 billion before retreating.
What’s Next for Ripple’s XRP in 2022?
Markets are bullish for next year. However, much will depend on the outcome of two cases.
An allegation of bias against the SEC made by Empower OSERVIT, a nonprofit government watchdog, will be key. Empower Oversight claims that SEC officials are biased against Ripple Lab and XRP. A ruling in favor of Empower Oversight would give the Securities and Exchange Commission (SEC) more reason to close the lawsuit against Ripple Lab, which should favor XRP.
Such a claim result could see the January 2018 XRP outbreak worth A$3.35. Some are talking about reaching levels of $5.00 per year. However, an unfavorable outcome will have a devastating impact on XRP and XRP holders. And while markets were in tatters, they were more upbeat than they were earlier in the year.
Aside from the outcome of the two lawsuits, the moves of the broader crypto market will also affect. A bearish year for cryptocurrency markets could see XRP fall to $0.50 levels. Downside risks for the broader crypto market remain greater regulatory oversight.
This article was originally published on FX Empire