Wrapped XRP on Ethereum may provide the asset with a much needed boost
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| Last updated: January 30th, 2024
For the last couple of months XRP has been mostly in the headlines due to the ongoing Ripple vs Securities and Exchange Commission (SEC) lawsuit. This might have distracted people from paying attention to the network developments being pushed out on Ripple. The most recent update might actually play out in favor of XRP and actually, save it.
XRP on Ethereum
Wrapped recently made the announcement that they will now be providing support for Wrapped XRP (wXRP) on the Ethereum blockchain starting December. Not so surprisingly, it hit the right notes with the market and investors alike.
The token which will be backed 1:1 by XRP can be used throughout Ethereum’s DeFi ecosystem. This step will not only benefit XRP’s adoption and expansion but also make Ethereum a more attractive DeFi option thanks to the availability of the support of multiple tokens.
As mentioned above, the market seemed to be elated with this announcement. Consequently, in the next 4 days, XRP’s price action went up by 11.81%, recovering from the 10.1% fall from the day before.
And this boost was truly much needed and the token might need another one as such in order to break free of its almost 2-month long consolidation now. Stuck under $1.168 since September 7 and above $0.099 since the beginning of October, XRP has virtually remained unmoved.
A consolidation this long might not be the best thing for the token.
XRP price action | Source: TradingView – AMBCrypto
The last week has already been a rather unusual one with long-term holders selling for the first time in the month of October. This resulted in the consumption of 323.7 billion days in the process.
In fact, even whales made their biggest movement in 6 months on 27 October. Over 3535 transactions, each above $100,000 and 324 transactions worth more than $1 million each.
XRP whale movement | Source: Santiment – AMBCrypto
Additionally, the drop in network growth that occurred the week before had pretty much recovered by the end of October.
XRP network growth | Source: Santiment – AMBCrypto
However, because Polkadot had already flipped XRP recently, for a while, to take the #7 spot, XRP might have to buck up. If XRP doesn’t move up soon this could happen again and maybe for good this time.
