Ripple’s XRP token has seen its fair share of ups and downs. The asset faced substantial challenges after the SEC filed a lawsuit agains the fintech company in December 2020. However, the suit reached a settlement in 2025, leading to XRP climbing to a new all-time high. Before you decide to invest in XRP, let’s look at 3 things that make the coin great, and 3 things that do no.
Things To Know Before You Invest In XRP: 3 Pros And 3 Cons
First let’s look at what makes XRP great. The settlement of the SEC vs. Ripple lawsuit brought substantial regulatory clarity for XRP. A US court ruled that retail purchase of XRP does not fall under securities laws, while institutional purchases do. Regulatory clarity if the first point that you should look at before investing in crypto.
The second point that makes XRP great is the availability of ETFs. ETFs allow institutions and investors to have crypto exposure without actually owning the underlying asset. ETFs have brought substantial institutional money into XRP, and the trend may continue to grow over the coming years.
The third point that makes XRP great is Ripple’s blockchain infrastructure. Ripple’s XRP Ledger (XRPL) has seen significant adoption over the last few years. Several banks and even some nations have utilized XRPL for blockchain use. The adoption of XRPL is a testament to the project’s robustness.
Also Read: Ride the XRP Wave Till $1.45 Price Target With 8% Profits: Analyst
While XRP is extremely popular, lets look at a few things that you should consider before investing. Firstly, some critics view XRP as more centralized than many other cryptocurrencies. Centralization could be a problem if you are after a more decentralized project.
Secondly, while the XRP Ledger has seen significant adoption, it still lags behind Ethereum (ETH) and Solana (SOL) for their wider use cases. The ETH and SOL networks dominate the decentralized applications sector and have also seen the launch of several other cryptocurrencies, especially memecoins.
