XRP overcomes capitalization. The views expressed here are not investment advice; provided for informational purposes only. Investing in any business involves risk, so you should always do your own research before making any decisions.
We advise you not to invest money that you cannot afford to lose. Despite the fall in the cryptocurrency market, XRP managed to come out strong and surpass the BUSD currency. As a result, it became the sixth largest crypto with the largest market capitalization. But what could cause this increase? Even with the progress of XRP, the altcoin has seen a 4% correction in the last 24 hours and is trading low for the last seven days at the time of writing. Another thing to consider is the presence of stablecoins in bear markets.
When the price of cryptocurrencies begins to fall sharply as in 2022, it is natural for investors to look for less volatile assets, as in the case of stablecoins, because these tokens are the ones that can remain the most stable.
A lot of interest goes to tokens backed by the US dollar, as is the case with three stakecoins in the top 10, USDT, USDC and BUSD. In this situation, there should be no room for altcoin over stablecoin. Find out what happened with XRP.
XRP and the Great Interest of the Whale Crypto investors have been interested in saving XRP since the beginning of the quarter of the year, this purchase was strengthened on December 21. 23. This may be motivated by the end of the SEC battle with Ripple, the company that created XRP, which will increase at the end of 2020. Since the time mentioned above, the SEC has accused Ripple of selling XRP without proper approval, as the federal agency considers the altcoin as a security.
However, two years have passed and the SEC has yet to win to prove its point. The biggest expectation from the cryptocurrency market is that in 2023, there will be a decision on this case and Ripple will come out on top or the case will end in settlement. Undoubtedly, this will be especially good for XRP, which can return to the market and exchanges that removed it from their platforms, new crypto companies can list altcoins.
If this situation were to emerge, XRP could experience a strong currency and return to the form of capital seen before the start of the SEC process. Therefore, the investment of capital by whales can only explain this event, accumulating XRP, even if it does not appear in the price of the token at this time. BUSD and pressure from Binance As XRP appears to be rising, the exchange rate of the crypto market may suffer from Binance’s accusations of money laundering and some activities of those who work on the platform Crypto terms qualify as suspicious.
At times, the BUSD lost its peg against the US dollar last week. Although it is natural in the stablecoin sector, some interference from rumors against major crypto exchanges must have prompted capital outflows from BUSD.
Another potential downside to the blockchain community is that a large portion of Binance’s customers invest in BUSD. In a November report, the crypto exchange said it was holding $21.7 billion in stablecoins. However, it is important to note that, according to the head of Binance, BUSD is issued by Paxos, a company controlled by NYDFS, and not by a cryptocurrency platform.
Also, since the balance comes from the company’s customers, the converters will be users of the platform. In this sense, some minor FUD has been used to contribute to the weakness of the stablecoin.