Factors Influencing XRP (Ripple) Price
The price of XRP is affected by many of the things you would expect – news about Ripple, project developments, the flow of assets on the exchange, sentiment and changes in the broader crypto markets and the economy as a whole.
The ongoing legal proceedings against Ripple are a key factor in the XRP price. The announcements made by the SEC have caused many cryptocurrency exchanges to remove XRP, and the lack of places to trade the cryptocurrency will prevent the increase in the value of XRP. A resolution in this case would remove some of the uncertainty that has plagued the XRP markets and could result in the cryptocurrency being relisted on exchanges and experiencing an increase in price and market cap.
XRP has a maximum supply of coins, so its value will not be depreciated by inflation. Also, when transactions are made on the XRP ledger, the sender must pay a small amount of XRP that will be burned and deducted from the total supply. While this increases the scarcity of the asset, it is unlikely to have much of an effect on the price of XRP, as it would take 70,000 years to destroy all XRP at the current rate. However, it does serve to add a small deflationary effect to supply.
XRP was designed as a medium of exchange rather than a store of value. This means that its price will most likely be influenced by the increased adoption of XRP by institutions – especially to facilitate global payments. However, many institutions are still reluctant to use it while it exhibits such high volatility.#