Ripple’s plan with this element might see major growth for XRP

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The SEC’s law­suit against Rip­ple has been a con­stant dark cloud hov­er­ing over the company’s growth attempts. How­ev­er, this has not stopped Rip­ple from pur­su­ing growth oppor­tu­ni­ties in var­i­ous segments.

A recent report sug­gests that Rip­ple is eye­ing growth through CBD­Cs and this might pro­vide a favor­able stand­ing with governments.

More impor­tant­ly, it might pro­pel XRP into the much-await­ed growth phase.

In one of the lat­est reports, Rip­ple revealed that it con­duct­ed a sur­vey through which it sought to estab­lish what finance lead­ers across the world thought of CBDCs.

The report goes on to high­light some of the ben­e­fits that CBDC adop­tion may pro­vide, such as faster trans­ac­tions and finan­cial inclusion.

Rip­ple has increas­ing­ly piv­ot­ed towards sup­port for CBD­Cs. The com­pa­ny plans to be a con­duit or medi­um for CBDC roll­outs. The com­pa­ny already has a pri­vate CBDC ledger which it has been mar­ket­ing as an ide­al solu­tion for CBDC rollout.

Will Ripple’s CBDC involvement affect XRP?

Ripple’s ODL ser­vices are ide­al­ly suit­ed for rapid cross-bor­der transfers.

In a way, Rip­ple might end up being an effi­cient clear­ing house for the glob­al bank­ing sys­tem. If this plan suc­ceeds, the demand for XRP would be through the roof, hence pos­i­tive­ly affect­ing its price action.

XRP deliv­ered a sol­id bull run towards the end of July and man­aged to briefly push above its resis­tance line.

How­ev­er, it has retraced since then and is back with­in the sup­port and resis­tance range. Its $0.37 press time price has been taunt­ing the upside but the lack of enough bull­ish pres­sure means any gains have been limited.

Source: Trad­ingView

Although Ripple’s plans for the CBDC seg­ment seem promis­ing, its progress has been lim­it­ed. This is like­ly due to the uncer­tain­ty around the SEC lawsuit.

As a result, it has achieved neg­a­tive net­work growth in the last four weeks.

Source: San­ti­ment

XRP’s upside has also been lim­it­ed by prof­it-tak­ing after minor gains. This is because investors are still cau­tious about the law­suit, thus the focus on short-term gains. This is demon­strat­ed by the 30-day MVRV ratio and the 30-day real­ized cap metrics.

Source: San­ti­ment

XRP’s real­ized cap has been increas­ing since the end of July while the MVRV ratio dropped dur­ing the same period.

This con­firms the prof­it-tak­ing, thus push­ing down the unre­al­ized prof­its as the price drops.

Rip­ple stands a chance at lever­ag­ing robust growth from its poten­tial involve­ment in CBDC rollouts.

How­ev­er, it is cur­rent­ly lim­it­ed by the lengthy court bat­tle with the SEC.

A favor­able con­clu­sion of this law­suit would have a pos­i­tive impact on XRP. Mean­while, if Ripple’s CBDC plans come to fruition, then it would secure healthy long-term growth for XRP.



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