Following a lengthy legal battle with the SEC, XRP has not fared well in terms of its price performance when compared to other major cryptocurrencies. Pro-XRP lawyer Bill Morgan expressed his surprise at XRP’s stagnant trajectory in a recent post on Twitter, questioning the reasons behind its lackluster performance. The prices of various cryptocurrencies from five years ago were highlighted in a post, revealing XRP’s poor performance compared to other major coins such as Bitcoin and Ethereum. Despite gaining regulatory clarity after the SEC investigation and lawsuit, XRP’s price has remained near its level from five years ago, while other cryptocurrencies have seen significant growth.
Bitcoin, which was trading at $6,420 five years ago, is now at $37,685. Ethereum, Litecoin, and Cardano have also experienced substantial increases. However, XRP is currently trading at $0.6031, very close to its price of $0.5 from five years ago. Morgan suggested that XRP’s performance may have been better if it had not been under the cloud of the SEC investigation and lawsuit.
Morgan also contested the idea that selling pressure is solely responsible for XRP’s price stagnation, presenting three key points to support his position. He emphasized that the quarterly release of 3 billion XRP from escrow is offset by 800 million XRP returned monthly, and that Ripple’s share of the volume is less than 0.5%. He also highlighted that Ripple’s escrow release inflation rate (5.4%) is lower than that of other projects like Flare and Solana (SOL).
Furthermore, Morgan highlighted the ongoing negotiations between the SEC and Ripple regarding XRP sales to institutional investors. He pointed out that the resolution of these talks or a definitive disgorgement ruling could have a significant impact on XRP’s valuation. Despite the legal uncertainty, there are potential catalysts that could boost XRP’s price, such as a favorable outcome in the SEC’s appeal of the court’s decision on Programmatic Sales, a settlement between both parties, or increased XRP adoption.
Although XRP’s price performance has been disappointing, there are reasons to be optimistic about its future. For instance, the SEC’s recent announcement of a confidential meeting has led to speculation of a possible settlement, which could significantly impact XRP’s price based on the outcome. Therefore, while XRP’s performance has been lackluster, there is still potential for improvement in the future.