XRP hits $60 billion market cap as analysts warn of chance of drastic correction

Ripple (XRP) has been experiencing strong retail demand over the past 48 hours, when the cryptocurrency price jumped from $1.05 to $1.34.

On August 15, 2021, XRP’s total market capitalization exceeded $60 billion for the first time since May 19, 2021.

According to the latest Coingecko data, the XRP remained the top-performing cryptocurrency in the top 10 for the past seven days, with substantial gains of over 60%. The world’s sixth-largest cryptocurrency is trading this Monday at close to $1.25, with a market capitalization of approximately $60 billion.

Source: Coingecko

The most recent jump in demand for XRP came after San Francisco-based RippleLab announced several partnerships to increase use of RippleNet, the company’s global financial network, and XRPL.

Partnership announcements and regulatory issues

Last week, Global Money Express (GME Remittance), one of the largest non-bank remittance service providers in South Korea, announced that the company has joined RippleNet to partner with Siam Commercial Bank (SCB), the largest bank of Thailand in terms of market capitalization. XRP jumped nearly 10% after GME’s RippleNet announcement.

Even in the face of such good news, regulatory issues are still a thorn in the side of Ripple and curb the prospect of a long-lasting rally for XRP.

The US Securities Regulator (SEC) filed a lawsuit against Ripple in December 2020, alleging that the latter became involved in this illegal offering of securities through the sale of XRP tokens in 2013 and beyond. Ripple denied the charges.

On Aug. 16, Ripple will respond to the SEC’s motion to discover “terabytes” of Slack communications data. The documents, if filed, can clarify whether or not Ripple has sold XRP to its investors as bonds.

According to Brazilian expert Felippe Percigo, a professional investor and MBA professor in Digital Finance and Blockchain, he chose five cryptocurrencies that do not offer good prospects for investments this year: Dogecoin, Shiba Inu, Tron, Bitcoin Cash and XRP.

Regarding XRP, Percigo argues that since it is a centralized cryptocurrency and that it has faced problems with the SEC, XRP is not a good investment option.

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