US President-elect Donald Trump’s election victory has had a significant impact on the cryptocurrency market. Following his campaign promises, Bitcoin price surged past $100,000 for the first time in history, with other altcoins like Solana and Cardano also experiencing a notable increase.
One project that could benefit greatly from a more favorable regulatory environment is XRP. The coin has been a target of the Securities and Exchange Commission (SEC) and is primarily used in the tightly regulated banking industry. Changes in personnel and policy under Trump’s administration may lead to reduced regulatory scrutiny.
Trump made several key promises regarding crypto, including keeping all bitcoin held by the US government in the future and replacing SEC Chairman Gary Gensler with Paul Atkins. This could lead to a less aggressive approach to regulation for XRP. While this news is positive for XRP, its value remains overhyped and overvalued.
XRP’s primary use case lies within RippleNet, a blockchain-based settlement and cross-border payment network used by banks and financial institutions. However, even if adoption increases, it may not lead to the supply crunch some expect, as banks can accomplish most of their needs without using XRP.
The main value of XRP comes from its low fees compared to traditional means. If RippleNet were to become the standard in the industry, it’s unlikely to capture the entire market and reduce fees significantly. Instead, hundreds of billions of dollars in banking fees may become hundreds of millions at best for XRP holders.
Given XRP’s current market capitalization of over $100 billion, its value is already heavily influenced by hype rather than substance. As a result, investors are advised to look elsewhere, such as Bitcoin, which has shown the potential to beat the market in years to come.
Source: https://www.fool.com/investing/2024/12/13/president-elect-trump-could-be-a-game-changer-for