Is the $2.5 billion drop in XRP market cap just the beginning?

XRP Market Cap Drops Amid Bearish Sentiment

As the bearish sentiment returns to the larger part of the cryptocurrency sector amid geopolitical uncertainties, XRP is no exception, having lost nearly $2.5 billion to its market capitalization in the last week alone, in addition to its price declining close to 9%.

Decline in Market Cap

XRP’s market cap seven days ago stood at $28.19 billion, whereas at press time, it amounted to $25.78 billion, which means it has dropped by $2.41 billion or 8.55% in a matter of days, as per the latest information retrieved from the cryptocurrency monitoring platform CoinMarketCap on October 11.

Possible Factors Affecting XRP’s Price

One potential factor affecting the price of XRP includes localized selling pressures stemming from Ripple’s movement of 60 million XRP on October 9. Ripple had retained 200 million XRP from this month’s one billion XRP token unlock.

Additionally, Mexico’s central bank, Banco de México, has expressed its intention to use Ripple’s liquidity solution, xRapid, as a bridge between the USD and MXN. This could potentially boost the price of XRP in the future.

Impact of Court Case Developments

XRP has shown a tendency to react positively to any favorable developments in the court case between Ripple and the SEC. For example, when Judge Analisa Torres rejected the regulator’s request for filing an interlocutory appeal to her earlier ruling that Ripple’s sale of XRP didn’t violate securities laws.

Hot Take: XRP Faces Market Pressure Amidst Geopolitical Uncertainties

XRP’s market cap has experienced a significant drop in the past week, mirroring the bearish sentiment in the broader cryptocurrency sector. Factors such as localized selling pressures and ongoing court case developments have contributed to the decline. However, there is potential for a future price boost with Mexico’s central bank considering the use of Ripple’s xRapid solution. As always, it is important to remember that investing in cryptocurrencies carries risks and should be approached with caution.