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Stock Analyst Expects a 3,000% Cardano Upsurge to $13+ if History Repeats

Sam Wisdom Raphael
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Stock Analyst Expects a 3,000% Cardano Upsurge to $13+ if History Repeats

A well-respected stock and crypto analyst on TradingView believes Cardano could rise 3,000% above $13 if its history repeats.

The seasoned analyst behind the BasicTradingTV account has recently projected a staggering 3,000% increase for Cardano (ADA), potentially driving its price to over $13. He bases the optimistic projection in the historical patterns and technical setups observed in ADA’s market behavior.

Cardano’s price movements have exhibited notable cyclical patterns over the years. The analyst pointed out that ADA has undergone significant surges followed by steep corrections over the years. 

ADA’s Historical Data

In an analysis of ADA’s monthly chart, the market watcher revealed that Cardano experienced a major surge to its first cycle high of $0.3885 in May 2018. However, a steep correction followed afterward, leading to a drop to a $0.0391 low in December 2018.

Cardano recovered from the correction over a six-month period and eventually collapsed again to the $0.03 level. The analyst confirmed that ADA formed a robust support at this $0.03 floor price. Cardano retested this support twice. Afterward, it then broke through a key resistance trendline, leading to an impressive 5,000% rally.

Cardano Monthly Chart BasicTradingTV
Cardano Monthly Chart | BasicTradingTV

The next cycle saw another substantial peak, followed by a correction that brought the price down to approximately $0.25. After finding support again, ADA embarked on a 250% rally. 

Cardano Targets $13+

The current market structure suggests a similar setup is forming. ADA has established horizontal support around $0.42, having broken previous resistance, which now acts as a support level.

The analyst believes if ADA follows this historical pattern, it could witness another significant rally. The potential for a 3,000% increase from its current levels would place ADA’s price at $13.53. While this projection is ambitious, it is based on the repetition of past market cycles, which have shown similar bullish breakouts and corrections.

Currently, the market conditions for Cardano appear favorable. As of the latest data, ADA changes hands at $0.4366. The daily chart indicates a recent bullish momentum, with Cardano up 26% since June 8.

Cardano in a Bullish Position

Market data confirms that ADA’s price has been moving within the boundaries of the Keltner Channel, a volatility-based envelope set. Cardano has recently touched the upper band of the channel, suggesting increased buying pressure.

Cardano Bullish Position
Cardano Bullish Position

The Bollinger Band Width (BBW) indicator, which measures the volatility of the asset, shows a recent expansion. This indicates that volatility is increasing, which often precedes significant price movements. The BBW value stands at 30.90, suggesting that the market is gearing up for potential high volatility in the near term.

If ADA continues to show strength and maintains its position above key support levels, the bullish case for a significant uptrend remains plausible. The recent price action alongside the historical patterns, supports the possibility of a major upward movement. However, such a rally is not a certainty.

Shiba Inu Burn Rate Soars 4822% Despite WazirX Hack, Will Price Rebound?

Albert Brown
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Shiba Inu Burn Rate Soars 4822% Despite WazirX Hack, Will Price Rebound?

Shiba Inu (SHIB) experienced a 7.85% price drop, but burn rate surged 4,822%, as the community incinerated 44,302,985 SHIB in 24 hours.

India’s largest crypto exchange, WazirX, recently fell victim to a massive hack, resulting in the theft of over 5 trillion Shiba Inu (SHIB) and other digital assets. Amid the incident, Shiba Inu has experienced a 7.85% price decline in the last 24 hours. 

However, despite this turmoil, a significant increase in the SHIB burn rate has emerged.

Substantial Increase in Burn Rate

Shiba Inu burn rate surged by 4,822% in the last 24 hours. A total of 44,302,985 SHIB tokens were burnt during this period, indicating a substantial reduction in the token’s circulating supply. 

SHIB BURN
Shiba Inu Burn Rate

Recent transactions include a notable burn of 35,422,511 SHIB. This sharp increase in burn rate highlights the community’s efforts to decrease the available supply and potentially boost the token’s value.

To date, over 410 trillion SHIB have been burnt from the initial supply, significantly reducing the number of tokens in the market.

Community is Pushing for Exchange-Supported Burns

Adding to the prospects, the Shiba Inu community has been vocal about reducing the token’s hefty circulating supply through more burn initiatives.

On July 10, enthusiasts pushed for substantial burns, with the Shiba Inu community-based burn tracker, Shibburn, exploring the idea of burning SHIB on Binance using trading fees. 

Prominent community figure Lola requested Binance CEO Richard Teng to consider this initiative, drawing parallels to Binance’s support for the Terra Classic (LUNC) burn. 

Other Ongoing Developments and Future Projects

Amid the ongoing discussions, Shiba Inu’s ecosystem team is also focused on long-term success. Lucie, the SHIB marketing lead, highlighted ongoing developments in an X post, emphasizing remarkable behind-the-scenes efforts. 

These advancements include the Shibarium version of Shiba Eternity scheduled for closed beta testing in Q3 2024, with public testing to follow. Additionally, the team is working on SHIB: The Metaverse, which could launch this year or next, and an upcoming L3 privacy blockchain.

During this press, Shiba Inu (SHIB) is priced at $0.00001766, up by 5.75% in the past 7 days.

Bitcoin Holders Drop by 672,510 Amid Market Shifts and Liquidations

Albert Brown
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Bitcoin Holders Drop by 672,510 Amid Market Shifts and Liquidations

Bitcoin holders dropped by 672,510 to 53.84 million, with analysts predicting a rebound and market shifts to meme coins and other altcoins.

The number of Bitcoin holders has seen a significant decline, as revealed by a recent Santiment analysis. Traders appear to be selling off their assets following the all-time high (ATH) in March 2024. Per Santiment, this mass liquidation suggests a potential for a price rebound. 

Santiment’s data highlights a substantial drop in Bitcoin holders, with 672,510 fewer addresses holding Bitcoin compared to a month ago. The current total stands at 53.84 million. 

This drop is the most prolonged decline since mid-September to mid-October 2023, a period just before the previous bull run. Notably, traders’ belief that the March ATH is the peak for the year has driven aggressive selling and liquidations, reflecting in the decreased number of holders.

Speculations on Bitcoin Holder Decline

Speculations on X suggest various reasons behind the significant drop in Bitcoin holders. Some users believe that funds are being redirected into altcoins, indicating the beginning of an altcoin season. 

Additionally, some traders are reallocating their Bitcoin investments into meme coins, anticipating a potential bullish market for these alternative assets. 

Holder Distribution and Transaction Activity

Elsewhere, according to data from IntoTheBlock, Bitcoin’s holder distribution is varied, with a significant number of addresses holding smaller amounts of Bitcoin. Out of the 54.19 million addresses, the majority hold less than 0.01 BTC. 

Screenshot 2024 07 18 at 160906
IntoTheBlock

Larger holders, those with balances between 1 to 100 BTC, account for approximately 994.53K addresses, representing more substantial individual or small institutional investments. The transaction metrics show massive activity, with $92.22 billion worth of transactions over the past seven days. 

Bitcoin to $100K Despite Holder Decline?

Despite the decline in Bitcoin holders, some market analysts remain optimistic about Bitcoin’s future potential. Todd Gordon, founder of Inside Edge Capital and CNBC contributor, predicts that Bitcoin could hit $100,000.

He attributes this optimistic forecast to former U.S. President Donald Trump’s pro-crypto stance, which he believes is boosting Bitcoin and related stocks. 

As Trump positions himself as a pro-crypto candidate in the upcoming election, Bitcoin and stocks like Coinbase, MicroStrategy, Riot Platforms, and Marathon Digital are experiencing gains. Investors are linking Bitcoin’s upward trajectory to Trump’s rising popularity in polls and prediction markets.

BNB Price Analysis: Optimism Testnet Launch Could Drive BNB to $600

Mark Brennan
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BNB Price Analysis: Optimism Testnet Launch Could Drive BNB to $600

Binance (BNB) price has retested the $580 level in each of the last 3-trading days, market news reports suggest the recent collaboration with Optimism (OP) has been a key bullish catalyst this week.

opBNB Testnet Launch Sends BNB Rally into Second-Gear

Binance Coin (BNB) has recently seen a significant uptick in its price, driven by the bullish momentum surrounding the launch of its opBNB Layer 2 testnet.

The opBNB testnet, built on Optimism’s OP Stack, aims to tackle scalability issues and reduce transaction costs on the BNB Smart Chain. This new development has ignited enthusiasm among investors and developers alike, positioning BNB for a potential breakout.

The opBNB testnet promises high throughput and low gas fees, which are crucial for the seamless operation of decentralized applications (DApps). During its test phase, opBNB handled over 35 million transactions and supported more than 150 DApps, demonstrating its robustness and scalability.

According to the BNB chain official data, the platform achieved a peak of 4,000 transactions per second during stress tests, underscoring its capability to manage high transaction volumes efficiently​.

BNB Price Action BNB USD 18 7 24
BNB Price Action | BNB/USD | TradingView

The chart above shows how BNB price has gradually recovered from the turbulent start to the month. On July 5, it sank to a 100-day low at the start of $455. But at the time of writing on July 18, BNB price continues to hover around the $580 level, reflecting a 29% surge from its the monthly time frame low.

Largely, BNB’s price recovery can be attributed the positive shift in the US macroeconomic landscape as well as the investors reaction to the opBNB testnet launch this week.

This latest technological advancement is expected to attract more developers and users to the BNB ecosystem, enhancing its overall utility and value proposition. Additionally, the reduced gas fees and faster transaction times are likely to drive higher adoption rates, contributing to BNB’s bullish outlook. With these developments, BNB could be poised for further gains, reflecting the market’s confidence in its scalability solutions and future growth potential​.

In light of these catalysts, analysts and investors are keeping a close watch on BNB’s price movements, anticipating continued positive momentum as the opBNB testnet progresses and eventually transitions to the mainnet. This period of innovation and expansion could well position BNB for sustained growth and increased market dominance for the Binance-issued coin.

BNB Price Forecast: $600 Resistance Now at Risk

Binance Coin (BNB) has seen a substantial rally, climbing 29.15% over the last 13 days to reach $579.20. The price action indicates a strong bullish sentiment, driven by the recent launch of the opBNB Layer 2 testnet, which promises to address scalability and cost issues on the Binance Smart Chain.

In terms of BNB price prediction for the days ahead,  technical indicators suggest further upside potential, with the $600 target now within striking distance.

The chart shows that BNB has formed a robust support base around the $500 mark, which coincides with the Parabolic SAR (Stop and Reverse) support level at $489.32. This strong foundation has provided the necessary momentum for BNB to aim for higher targets. The Relative Strength Index (RSI) currently stands at 55.93, indicating that BNB is not yet in overbought territory, leaving room for additional gains.

BNB price forecast BNB USD 18 7 24
BNB price forecast | BNB/USD | TradingView

A breakout above the $600 resistance level could pave the way for BNB to target the next significant resistance at $650. The bullish momentum is further supported by the upward trend in the RSI, which suggests increasing buying pressure. However, strategic traders would certainly keep an out for potential pullbacks, with $550 and $525 levels acting as immediate support zones.

XRP Price Surges to 3-Month High: Here’s Why Another 30% Rally Could Follow

Mark Brennan
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XRP Price Surges to 3-Month High: Here’s Why Another 30% Rally Could Follow

XRP price surged to a three-month high of $0.61 following speculation of a potential settlement between Ripple and the U.S. Securities and Exchange Commission (SEC), market indicators suggest that more gains could follow in the weeks ahead.   

Crypto Market Rally, SEC Case Speculations Send XRP Price Hits 3-Month Peak  

XRP price has recorded considerable double-digit gains this week, outperforming the likes of Bitcoin (BTC), and Ethereum (ETH)  by a wide margin. Market observers attribute the rally to rumors of a crucial meeting scheduled for July 18, which could potentially end the prolonged legal battle between the SEC and Ripple .

The anticipation of this settlement has led to a noticeable decrease in XRP’s spot market sell pressure over the past week. Speculation about the outcome of the SEC and Ripple meeting has fueled bullish sentiment, propelling XRP’s price to reclaim the $0.60 level. This speculation was further amplified by comments from market participants who believe insider information is driving the recent price action.

At the time of writing on July 18, XRP price topped out at $0.64 within the daily timeframe, marking a 66% rally within the last 2-weeks alone. Meanwhile, BTC and ETH have only managed less than 20% upside respectively during this period. 

This emphasizes that aside from the dominant positive sentiment within the crypto markets, XRP price has other internal bullish catalysts driving the price action this week. 

Despite the optimism, some experts remain skeptical about the likelihood of a settlement. Former SEC lawyer Marc Fagel has downplayed the rumors, noting that numerous meetings between the SEC and Ripple have taken place without yielding a resolution. Fagel remarked, 

“They’ve had about 150 of these nearly weekly meetings since the case was filed, and Crypto Twitter was convinced a settlement was being discussed at every one of those meetings, but It’s not the one”.

Nonetheless, the possibility of a favorable outcome has kept market participants optimistic.

A settlement could mark a pivotal moment for Ripple and the wider cryptocurrency market. It would not only resolve the legal uncertainties surrounding XRP but also set a precedent for how regulatory bodies approach other digital assets. Ripple’s ability to navigate this legal challenge successfully could bolster confidence in the company’s future prospects and the legitimacy of XRP as an asset accepted by institutional investors and regulators.

XRP Price Forecast: Another 30% Upswing to $0.70 On the Cards

XRP has seen a significant upswing, with its price recently reaching a three-month high of $0.61, largely driven by speculation around a potential settlement between Ripple and the U.S. Securities and Exchange Commission (SEC), a long-standing legal battle that has heavily impacted XRP’s price movements.

On July 18, market observers anticipate a crucial meeting between the SEC and Ripple, which could potentially end the legal dispute and provide a substantial boost to XRP’s price.

The technical indicators from the chart highlight a strong bullish trend. XRP’s price has increased by 66.57% over the past 13 days, signaling a robust upward momentum.

The current price level of $0.5814 is well above the 0.618 Fibonacci retracement level at $0.4301, which serves as a strong support. This indicates that the bulls have firmly taken control, and any pullback is likely to find substantial buying interest around this level.

XRP Price Forecast 18 7 24
XRP Price Forecast | XRP/USD

The Accumulation/Distribution Line (ADL) shows a steady increase, indicating that the buying pressure is outpacing selling pressure, a bullish signal for XRP. Additionally, the Relative Strength Index (RSI) is currently at 60.01, suggesting there is still room for further upward movement before the asset becomes overbought.

This presents an opportunity for XRP to push higher towards the next resistance level at $0.70, representing a potential 30% gain from the current price.

Key resistance levels to watch are the recent high at $0.6365 and the psychological barrier at $0.70. On the downside, support levels are seen at $0.50 and $0.4301. If the anticipated SEC settlement news turns out to be positive, XRP could break through these resistance levels and embark on another significant rally.

Traders should keep an eye on these levels and monitor any updates on the SEC-Ripple case, as they will likely have a substantial impact on XRP’s price trajectory.

Analyst predicts XRP Breakout Sparking 2017 Style Surge to $100s

Albert Brown
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Analyst predicts XRP Breakout Sparking 2017 Style Surge to $100s

According to crypto analyst Javon Marks, XRP is poised for a breakout that could lead to a substantial price increase, potentially sparking a 2017-style bull move.

Historical data indicates XRP’s price surged from below $0.01 to nearly $3.50 in 2017, marking an approximate 42,700% increase. The current technical setup shows XRP nearing the apex of a long-term descending triangle pattern, suggesting a significant breakout might be imminent.

Historical Data and Current Technical Setup

The chart analysis highlights XRP’s previous bull run in 2017, where it experienced a substantial increase in value. After peaking, the price has been consolidating within a descending triangle pattern. This pattern often indicates a potential breakout when the price approaches the apex. 

The volume analysis further strengthens this prediction, showing a low volume often precedes significant price movements.

Volume Analysis and Breakout Potential

During the 2017 bull run, volume spikes indicated strong buying interest. Currently, the volume appears relatively low, a condition that often precedes a large price move. Marks suggests that a breakout from the current pattern could mirror the 2017 bull run, potentially increasing XRP’s price by over 300 times its current value.

Javon Marks, in another analysis, mentioned a potential breakout from a massive coil or “symmetrical triangle” pattern. This breakout, coupled with a full logarithmic follow-through, could result in a significant price increase, potentially reaching over $150.

Current Sentiment and Market Reaction

As of now, XRP is trading at $0.5722, with a 24-hour trading volume of $3,867,401,689, showing a 6.91% decrease in the last 24 hours. Trader sentiment follows the price action, with bullish narratives emerging for XRP. According to Santiment, XRP has seen a notable price increase, leading to a shift in trader sentiment towards a more positive outlook.

XRP bullish calls 18 7 24
XRP-Santiment

Additionally, XRP’s recent performance has caught the attention of prominent U.S. exchange Gemini. This surge marked over 60% growth since the bearish trend reversed on July 5. Although XRP has corrected some of its gains, it remains the top-performing cryptocurrency among the top 10 assets over the past week.

Top Bitcoin Maxi Says Not a Fan of XRP But Keeping Very Close Eye on it

Abdulkarim Abdulwahab
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Top Bitcoin Maxi Says Not a Fan of XRP But Keeping Very Close Eye on it

The rebound of XRP from the abyss continues to be a hot topic in the crypto scene, with even prominent critics expressing interest.

This week, XRP attained its highest value in three months after advancing by over 30%, ultimately emerging as the best-performing token among the top 20. 

Prior to this, XRP was perceived as the least favorable asset to hold. Some critics even suggested that staunch XRP proponents appear uninterested in accumulating wealth. As a result, XRP’s rebound is stirring significant sensations from unusual quarters.

Bitcoin Maxi Keeping “Very Close” Eye on XRP

MMCrypto, a well-known pro-Bitcoin pundit with 1.4M followers, took to social media X to express a surprise interest in XRP. Despite admitting that he is not a fan of the cryptocurrency, he revealed that he is closely monitoring XRP’s recent performance. 

The sudden frenzy surrounding XRP has piqued his interest to the point where he is considering investing in the asset, a likely departure from his usual Bitcoin-centric views.

The XRP community has taken notice of MMCrypto’s sudden interest in the cryptocurrency. Commenters humorously expressed that it is expected that former naysayers will jump on the XRP bandwagon.

Before XRP’s recent market surge, market analyst Krillin reiterated his long-held belief that XRP is a “scam” but consented that its price was approaching an “area of interest,” implying that it was poised for a notable move. 

Indeed, this projected upside move materialized as XRP advanced by approximately 43% from last Friday when he made the commentary. The skeptic analyst has acknowledged XRP’s comeback in a follow-up update, saying, “Call me when XRP hits $1.”

XRP Also Gets Bloomberg’s Attention

Aside from community market analysts, XRP’s resurgence has also caught the attention of mainstream media outlet Bloomberg. In a recent report, Bloomberg referred to XRP as a “little-known cryptocurrency,” highlighting that it has stolen the spotlight in the market.

Specifically, the article stated that XRP is leading the current rally, attributing it to speculation about Ripple’s lawsuit settlement. Meanwhile, its description of XRP as a little-known crypto, despite being the seventh biggest crypto asset, has been criticized by community members.

Shiba Inu Breakout Could Spark 130% Spike to $0.00005, Trader Predicts

Albert Brown
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Shiba Inu Breakout Could Spark 130% Spike to $0.00005, Trader Predicts

Crypto investor SHIB KNIGHT sees a potential breakout for Shiba Inu, predicting the breakout to spark a 130% price rally.

The analyst made this projection in a recent post on X. His analysis points to a reversal in the market, suggesting a possible surge to $0.00005 upon breakout confirmation on the weekly chart.

 

The chart provided by SHIB KNIGHT reveals a descending triangle pattern. As SHIB approaches the triangle’s apex, a potential breakout looms. This pattern indicates a possible move upwards if the price breaches the triangle’s upper boundary.

According to the analyst, the target price post-breakout could mark a 130.10% increase from the breakout point. SHIB KNIGHT emphasized the need to monitor the weekly chart closely, as it will provide a broader perspective on whether the breakout is part of a larger trend reversal.

Key Support and Resistance Levels

Meanwhile, the In/Out of the Money Around Price (IOMAP) analysis offers further data into the distribution of SHIB token holders based on their buying prices. Significant support levels are evident in the price ranges of $0.000016 to $0.000019, where a high concentration of addresses bought SHIB below the current price.

Source IntoTheBlock
IntoTheBlock

Specifically, support levels are strong in the $0.000016 to $0.000017, $0.000017 to $0.000018, and $0.000018 to $0.000019 ranges. This buying interest around these levels suggests substantial support, potentially limiting the downside if prices fall.

Market Conditions Are Favorable

In a recent analysis, market analyst Javon Marks also discussed Shiba Inu’s potential for a breakout, projecting an imminent upsurge. Marks, who accurately predicted SHIB’s rally to $0.000045 earlier this year, now foresees a potential return to its all-time high. 

His analysis in February identified a breakout pattern from a downtrend channel, leading to the price surge. Marks points to a hidden bullish divergence and favorable market conditions, suggesting that SHIB could reach new heights in the upcoming uptrend.

Top Blockchain Data Protocol Now Allow Users to Encrypt Shiba Inu

Albert Brown
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Top Blockchain Data Protocol Now Allow Users to Encrypt Shiba Inu

Data Ownership Protocol, a leading blockchain data protocol, adds Shiba Inu (SHIB) support on its mainnet, aiming to enhance transaction security.

The Data Ownership Protocol recently announced the expansion of its token support to include Shiba Inu (SHIB) on the DOP Mainnet. Per the announcement, this development allows users to securely encrypt and transfer their Shiba Inu tokens, enhancing transaction security and transparency. 

The integration aligns with the Data Ownership Protocol’s objective to improve digital asset management, providing a better experience for Shiba Inu holders.

The Data Ownership Protocol (DOP) is a project focused on enhancing data privacy and control within the Web3 environment. Utilizing cryptographic technologies such as zk-SNARKs and ECDSA, DOP allows users to manage their on-chain activities with selective disclosure.

Users can choose what information to share about their assets and transactions, all while maintaining compatibility with Ethereum decentralized applications (DApps) and preserving liquidity.

Community Skeptic on DOP’s Update

The crypto community has had mixed reactions to this update. Some users expressed their excitement, with one commenter stating that the DOP Mainnet continues to add more value. Conversely, others were critical, demanding broader token support and transparency. 

One dissatisfied user remarked on the need for more cryptocurrencies to be onboarded for the DOP coin to regain value. Another commenter questioned the project’s legitimacy. 

Further Token Integrations 

In addition to Shiba Inu, the Data Ownership Protocol has also integrated support for other meme coins such as Floki Inu (FLOKI), Pepe (PEPE), as well as Decentraland (MANA).

The announcement also hinted at future token integrations, indicating ongoing efforts to broaden the platform’s capabilities.

New Developments in the Shiba Inu Ecosystem

Meanwhile, the Shiba Inu community has been abuzz with speculation following a cryptic message from Binance, the world’s largest crypto exchange by trading volume. The message, featuring a dog and two oranges on luggage, led many to believe that Binance might soon support Shibarium, Shiba Inu’s Layer-2 scaling solution. 

On the same day as the Data Ownership Protocol’s announcement, Shytoshi Kusama, the pseudonymous leader of the Shiba Inu ecosystem, revealed his advisory role in AIRian, a project focused on Decentralized Physical Infrastructure Network (DePIN).

Kusama disclosed this role as AIRian’s AIR token achieved listings on major exchanges like Gate.io, GOPAX, and Ape Terminal. 

BIS Releases New Requirements for Banks Looking to Hold XRP, Other Group 2 Assets

Sam Wisdom Raphael
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BIS Releases New Requirements for Banks Looking to Hold XRP, Other Group 2 Assets

The Bank for International Settlements (BIS) has released new requirements for banks looking to hold XRP and other Group 2 crypto assets.

The BIS, which positions itself as a bank for central banks globally, has introduced new regulations governing banks’ exposure to Group 2 cryptocurrencies. Notably, the BIS had in the past defined what Group 2 crypto assets are in an effort to separate them from other cryptocurrencies.

Group 2 assets include unbacked crypto assets such as XRP, Bitcoin (BTC), and Ethereum (ETH). The category also contains stablecoins that lack effective stability mechanisms. According to the BIS’ classifications, these assets are riskier due to their volatility.

The Bank of International Settlements released its new requirements criteria for holding these assets in a publication yesterday. Notably, prominent XRP community figure Eri called attention to the publication in a recent post on X. 

BIS Latest Requirements for Banks Holding Crypto

In the latest requirements, the BIS has stipulated that a bank’s total exposure to all these Group 2 assets must not exceed 1% of its Tier 1 capital. For the uninitiated, the Tier 1 Capital represents a bank’s core capital.

This capital is the primary financial buffer that absorbs losses, ensuring the bank’s stability. Per the BIS requirement, if a bank with $1 trillion in Tier 1 Capital seeks to hold XRP and other assets in Group 2, the combined worth of all assets must not be more than $10 billion.

In addition, the BIS requires that no single Group 2 cryptocurrency can constitute more than 5% of the total Group 2 holdings. To put this into perspective, if the bank’s total Group 2 holdings amount to $10 billion, its XRP holdings alone must not exceed $500 million. The same applies to other Group 1 assets. 

These limits are an effort to reduce the risk posed by the fluctuating value of these crypto assets. While cryptocurrencies have garnered public attention in recent times, certain events have exposed the risk associated with them. These events include the Terra implosion of May 2022 and the FTX collapse of November 2022.

Per the publication, the BIS’ recent requirements are set to take effect on January 1, 2026. The criteria could reshape how financial institutions interact with assets like XRP, Bitcoin, and Ethereum. 

XRP Adoption Among Banks as Crypto Goes Mainstream

Crypto regulations have taken focus in recent times as the industry pushes further into the mainstream scene. For instance, the European Union recently enacted the first part of its MiCA regulations, affecting stablecoins. 

Mainstream banks have begun gaining exposure to crypto assets. Recall that last December the Basel Committee disclosed the crypto holdings of 19 banks across different regions. The disclosure confirmed that these banks held $205 million in XRP at the time. 

Despite this, XRP has not commanded as much adoption from banks and financial institutions due to the ongoing SEC lawsuit. Anderson, a crypto researcher, argued in February that XRP might not see increased adoption by banks until the U.S. SEC publicly declares it is not a security.

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