XRP To Rally As Ripple Explores Potential Acquisitions• June 1, 2022 2:13 pm • Comments
Ripple has been able reach a record $15 billion valuation thanks to its tremendous growth outside of the US despite the current SEC lawsuit.
Recent news have now indicated that the blockchain firm is just getting started as the firm may now be looking to do multiple lucrative acquisitions.
As part of its expansion plans, Ripple has purchased companies like Trianglo, Algrim, and Logos in the past which indicates the company’s strong balance sheet and desire to expand its blockchain network.
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A recent CNBC interview with Ripple CEO Brad Garlinghouse also revealed that the company is not done with doing mergers and acquisitions.
In fact, Garlinghouse even made the statement that Ripple has now grown to the point where it is most likely to be the one to acquire companies from now on.
— Investographer (@investographer) May 31, 2022
Garlinghouse emphasized that Ripple is at a juncture where it’s “more likely to be the buyer versus the … seller.”
With its capital and resources, Ripple has been striving to build a more manageable ecosystem for developers to create projects around XRP, subsequently incentivizing companies to use the cross-border payments token.
Despite positive developments in the SEC lawsuit and notable deals especially in the Asia cryptocurrency market, the performance of XRP has been underwhelming to some prominent crypto analysts.
It’s worth noting that XRP is the only veteran cryptocurrency in the top ten that has been unable to top its 2017-2018 bull market all-time highs.
It was also recently overtaken by Cardano’s ADA. With a market cap of around $20.1 billion, XRP is now the seventh-largest cryptocurrency after ADA.
Many investors are expecting the upcoming acquisitions that Ripple is hinting at to continue to bring more real world use cases to the Ripple network which further strengthens the value of XRP.
After all, Ripple already covers many essential use cases such as being a cross border payments network that can be used by financial institutions worldwide as well as being able to provide an all in one CBDC platform.
With more large scale deals coming through and a potential win coming up from the existing lawsuit with the SEC, these reasons could likely become huge catalysts that kickstart a new rally for XRP.
Right now also happens to be a great opportunity to look for acquisitions given the current market slumps in both the traditional and crypto markets.
Ripple, FTX on the hunt for acquisition targets as market crashes
Two top cryptocurrency companies Ripple and FTX, told CNBC that they’re on the lookout for acquisitions as the industry hopes to drive growth through buying other firms. https://t.co/xSSezctKr0
— IN (@Ianbins) May 31, 2022
Mergers and acquisition activity in crypto boomed in 2021 with the global value of such transactions totaling more than $55 billion, versus $1.1 billion in 2020, according to PWC.
That coincided with a boom in cryptocurrency prices that took bitcoin to an all-time high in November last year.
But since then, prices have come crashing down. Bitcoin is about 55% off of its record high of $68,990.90, according to CoinDesk data.
A drop in cryptocurrency prices, and potentially valuations of companies in the industry, could make certain acquisitions attractive to larger players.
With Ripple certainly being one of the biggest players in the industry right now, this will likely be a time of opportunity for them to capitalize on.
FTX, Ripple on the lookout for acquisitions to bolster growth | CryptoSlate https://t.co/7ZEQcmolcf
— CR (@equitypool) June 1, 2022
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