Ripple published its official 2024 Q1 report yesterday, marking significant strategic shifts in its journey. Popular Udemy instructor and crypto analyst, the Bearable Bull, upon reading Q1 2024, believes there are 6 possible plans for Ripple, naming the same in his recent X post.
Ripple Predictions
Pivot from XRP Sales
The Bearable Bull suggests that “Ripple is likely beginning to pivot away from XRP sales as the main income stream (likely will be part of some type of settlement).” Not only can this strategy boost Ripple’s revenue streams, but it might also stabilize XRP prices by reducing the market supply.
Supporting this prediction is Ripple’s Q1 2024 report, which highlights significant advancements within the XRP Ledger that are not solely reliant on XRP sales. The introduction of XLS-30, a non-custodial automated market maker (AMM) on XRPL’s decentralized exchange (DEX), showcases Ripple’s commitment to enhancing the platform’s functionality and liquidity without depending on XRP sales.
Expansion into Custody Services
To support his previous statement, the Bearable Bull has drawn reference from Ripple’s acquisition of Metaco and Standard Custody, which he suggests “is a massive new infrastructure play for Ripple to gain another income stream through custody services.”
The Q1 2024 report has also focused on Ripple’s strengthening XRPL’s integration capabilities. Partnerships with Axelar and Zoniqx will potentially enhance interoperability and streamline real-world asset tokenization.
Launch of a New Stablecoin
The most talked-about speculation this year has been Ripple’s launch of an IPO, a new stablecoin, or the XR ETF.
The crypto analyst has suggested that “Ripple is launching a new stablecoin that aligns perfectly with Europe’s (MiCA) regulations. (This is yet another new potential income stream for Ripple).”
Compliance with Europe’s MiCA regulations can prove to be another potential revenue source and strategically position Ripple to capture market share from established stablecoins like Tether.
The Q1 2024 report details a significant increase in on-chain transactions and the activation of new features like auto-bridging, which utilizes XRP to facilitate trades. These advancements are sure to act as the foundation for a robust infrastructure for supporting new financial products, such as the upcoming stablecoin.
Competing with Tether
The Bearable Bull speculates that Ripple’s stablecoin could replace part of Tether’s market share, particularly as US regulators intensify scrutiny on Tether. “Tether is in the line of fire with US regulators as it’s likely that Ripple is positioning its stablecoin to replace part of Tether’s market share,” he observed.
Ripple’s Q1 reports for efforts to increase XRPL’s liquidity and trading efficiency, highlighting the synergy between AMMs and auto-bridging, can provide a strong foundation for the new stablecoin.
Minimizing XRP Sales
Ripple is likely to minimize its XRP sales to support a rise in XRP prices. The Bearable Bull explained, “XRP sales will be minimized to allow for XRP price rise.” This approach aligns with Ripple’s long-term objective of supporting XRP’s value growth.
The Q1 report shows Ripple’s commitment to improving the XRPL ecosystem. It focuses on technological advancements and integrations that enhance the platform’s overall value and attractiveness, indirectly supporting the reduction of XRP sales.
Positioning for an IPO
The Bearable Bull suggested, “With new income streams, Ripple will be in a more powerful position to IPO at some point in the future when market conditions are ideal for them.” This potential public offering could mark a significant milestone for Ripple, enhancing its market presence and investor appeal.
