XRP Positioned to Lead the New Financial System, Says Industry Expert

• One industry expert says that the XRP community must remain focused on building solutions and not get pulled into the sideshows.
• XRP has failed to impress despite most of its peers recording increases to start the week, with the market cap of the XRP Ledger hitting its lowest since January 2022.

XRP has started the week with a worryingly characteristic lack of momentum, gaining a measly 0.2% in the past day to bring its weekly drop to 4.4%, the third-highest drop in the top ten after Ethereum and BTC, respectively.

XRP trades at $0.5317, giving it a $29.95 billion market cap, the seventh-largest in the market.

The lack of momentum is manifesting on the XRPL. As XPMarket founder Artur Kirjakulov revealed on X, the market of XRPL dropped to $80 million, its lowest since January 2022.

XRP Ledger's Ecosystem Market Cap Hits Record Low: What It Means

The market cap of #XRP Ledger's ecosystem recently dropped to $80 million, marking the lowest point since Jan 2022 (the oldest record according to @xpmarket). While this might raise concerns, it's important to… pic.twitter.com/ruTsJavk3a

— Dr. Artur Kirjakulov (@Kirjakulov) September 8, 2024

The dip in the ecosystem market cap can be assessed as a strength as it allows projects to regroup away from the speculation and gives investors a better picture of the project with staying power. However, it has negative implications as well—for instance, it could signal that projects are leaving XRPL for other chains. It could also discourage new builders from joining and dishearten users from engaging with their favorite XRPL projects. Ultimately, it could erode user and investor confidence, and this can be difficult to recover.

Kirjakulov opines: “Downturns can fuel long-term growth if the ecosystem pivots toward utility and embraces fresh ideas. It’s a moment for XRPL to recalibrate and seize new opportunities, not just a signal of decline.”

Despite the lax performance, some analysts believe that the breakout is near. One analyst points to the consolidation cycle that XRP has been caught up in previously, where a breakout brought about a massive surge to a new all-time high. This same pattern seems to be repeating, as we’ve reported, and a breakout could push the token to new heights.

$10+ per #XRP This Year

XRP looks bullish, and the next bull cycle is here! pic.twitter.com/lvGRN9iX2f

— JackTheRippler © (@RippleXrpie) September 9, 2024

Focus on Building: Expert Tells XRP Ecosystem

One expert has called on the XRP community to keep building and ignore the price and some of the political issues around the network. Versan Aljarrah, the founder of crypto consultancy Black Swan Capital, noted that the noise around Chris Larsen endorsing Democrat Kamala Harris must not deter progress.

“Focus on the bigger picture. XRP is still building the foundation of the new financial system while Bitcoin’s ties to intelligence agencies remain undeniable,” he stated.

The narrative of #Ripple backing #KamalaHarris is just another calculated distraction to unsettle emotional investors

Focus on the bigger picture. #XRP is still building the foundation of the new #financial system while #Bitcoin’s ties to intelligence agencies remain undeniable pic.twitter.com/Ehy6sVc1ls

— Black Swan Capitalist (@VersanAljarrah) September 6, 2024

As we reported, Larsen was among nearly 100 other major business leaders who voiced their support for Harris in a statement last week. The move by the Ripple founder contrasts with the company’s incessant criticism of the Biden-Harris administration, under which it was almost brought down by the SEC.

In fact, Ripple has been seen to lean Republican and warm up to Donald Trump, the self-proclaimed crypto saviour. The company’s CLO Stuart Alderoty even donated $300,000 to Trump’s campaign and has attended his events.

With Larsen leaning the opposite way, Ripple seems to be betting on both sides, plausibly to protect its interest regardless of who emerges victorious in the November polls.