A cryptocurrency analyst has predicted that crypto payments firm Ripple could be the next most valuable company, similar to Amazon and Facebook.
This prediction comes as XRP sees poor performance amid market volatility and Ripple's ongoing court battle with the US Securities and Exchange Commission (SEC).
Analyst predicts Ripple emerges as a billion-dollar startup
YouTube host AllinCrypto has released a new video, highlighting Ripple's future prospects and its ability to become a billion-dollar company.
The analyst expressed confidence that the United States will see Ripple as a “unicorn company” in the same vein as e-commerce and technology giants such as Amazon, Apple, Facebook, and Microsoft.
The analyst also revealed that Ripple is on a similar growth trajectory as these leading companies have contributed to the growing US economy.
He based his prediction on plans to settle cryptocurrencies with stablecoins, highlighting how members of the U.S. treasury acknowledge the importance of stablecoins in the nation's economy.
In the YouTube video, the crypto analyst shared a recent Wall Street Journal article that highlighted how cryptocurrencies could avert a potential US debt crisis .
He revealed that treasury members are discussing how stablecoins could help the United States maintain global dominance, highlighting the potential for these digital assets to address “the massive debt burden that the U.S. are currently suffering."
In early April, Ripple announced its intention to launch a USD-pegged stablecoin, competing with established stablecoin giants like Tether (USDT) and Circle (USDC).
The development is in line with the cryptocurrency payments company's plans to expand its digital payments footprint while strengthening its position in the U.S. financial markets.
With a growing market capitalization of more than $29 billion as of June 4, Ripple is still far behind tech giants like Amazon and Facebook, both of which have market capitalizations of more than $1 trillion.
Crypto payments companies will have to achieve similar market valuations and widespread adoption as these tech giants before they can achieve “unicorn company” status.
Currently, Ripple is doing all it can to expand its global operations and services despite the declining performance of XRP, the native token of the XRP Ledger (XRPL).
Additionally, the ongoing legal battle with the US SEC and the lack of regulatory clarity for digital assets in the US could hinder the crypto payments company's growth.
XRP's lackluster performance
Given XRP's poor performance in the crypto market, the crypto analyst's prediction of Ripple becoming a unicorn company seems quite ambitious.
XRP has been consolidating around the $0.50 price threshold for years, seeing large declines even in favorable market conditions.
The cryptocurrency's stagnant value has left long-term XRP investors and community members extremely frustrated, leading some to sell off their significant holdings.
According to CoinMarketCap, the price of XRP is $0.49, reflecting a 1.52% decline over the past 24 hours and a 9.36% decline over the past month.