As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market trends and price rallies. However, the recent surge in XRP (XRP) has caught my attention due to its unique set of catalysts and potential long-term growth prospects.
In November 2024, XRP (XRP) saw an unprecedented surge in price, largely driven by favorable political conditions and exciting new product launches. Georgios Vlachos, a co-founder of the open-source Axelar interoperability platform, hinted to CryptoMoon that the imminent introduction of RLUSD stablecoin could significantly increase demand for XRP in 2025.
Vlachos explained that numerous individuals, even those in developing economies, frequently rely on stablecoins for both transactions and as a means of value storage. He further mentioned that most trades and remittances involving RLUSD will predominantly be processed on the XRP Ledger (XRPL) and the XRP-EVM sidechain, thereby boosting the demand for XRP. According to Vlachos, this was shared during a conversation with CryptoMoon.
“When you do those transfers, you pay for gas in XRP. So, the XRP holders are still going to benefit because you burn some XRP every time you do a transaction.”
On December 3, 2024, XRP reached a seven-year peak of around $2.90, but it later retreated to its current prices due to the Relative Strength Index (RSI) reaching 95, which signals the asset was overbought. Even with this dip, there are several factors that continue to keep XRP in focus for investors as we approach 2025.
Catalysts driving XRP’s price
After Donald Trump won the election on November 5th, the price of XRP surged dramatically, along with other cryptocurrencies, largely due to optimistic comments about cryptocurrency from the incoming President and expectations of a more favorable regulatory environment for the crypto sector in the U.S.
On November 25th, investment company WisdomTree submitted an application for an XRP ETF to the Securities and Exchange Commission (SEC), joining other firms such as Bitwise, Canary Capital, and 21Shares who have previously filed similar applications seeking approval for an XRP exchange-traded fund.
On December 1st, the market value of XRP surpassed that of Solana, positioning XRP as the fourth largest digital currency in terms of market capitalization.
Based on figures from CoinMarketCap, the market value of XRP is about $138 billion at present. It’s worth slightly under $2 billion less than Tether’s current market cap which stands at around $140 billion.
On December 10, the New York Department of Financial Services granted approval for Ripple‘s USD-pegged stablecoin, known as RLUSD. This digital currency is backed by an overcollateralization of cash reserves and short-term liquid assets like U.S. Treasury bills, and can be exchanged at parity with one U.S. dollar.
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2024-12-15 20:26