Ripple is a digital payment network used to facilitate crypto transactions and exchanges. By utilizing a medium called ‘Gateway’, Ripple enables users to make quick and easy transactions and conversion of currencies. The network’s native token, XRP enables users to make seamless and low-cost cross-border transactions and exchanges. The token facilitates exchanges between currencies, without relying on an intermediary. International transactions have become much easier with XRP. The coin has recently gained strong traction from investors, with its 200% xrp price surge. Continue reading the article to know everything about the price surge: will it continue the rally or face a dip?
XRP Price Action
XRP is currently trading at a price of $3.24. The coin has a market cap of $187.03 billion and a 24-hour trading volume of $19.14 billion. Though the token’s value has declined 6% in the last 24 hours, it is sailing towards its all-time high of $3.40. The recent surge has exceeded 200% and the momentum is likely to continue. Many analysts anticipate the token can reach up to $10 if the current buying momentum continues.
Reasons for the XRP Price Surge
The recent price surge is allied with numerous factors, including the existing market conditions and Trump’s victory in the US elections. The main reasons for the price surge are listed below.
1. Donald Trump’s victory in the US election
The victory of Donald Trump in the US election has brought a positive impact on the crypto industry, with many hoping for a friendly and sustainable approach towards crypto. Many analysts and investors believe that Donald Trump’s government will bring a revolution in the crypto industry, providing a less regulated and enhanced trading environment.
2. Ripple’s ETF Approval
Ripple ETFs have been a hot topic of discussion in the crypto market after the launch of Bitcoin and Ethereum ETFs. Though the SEC has approved Bitcoin and Ethereum ETFs, their rigid approach towards Ripple ETF has concerned many, however, with the present market scenario, the XRP ETF is likely to launch this year. An industry expert, JP Morgan believes that with the approval of XRP ETF around $4-8 billion of investments can be expected within the first year. With the anticipation of the approval, many investors have made their investments in the XRP, fueling the price surge.
3. SEC vs Ripple Lawsuit
In the legal battle between SEC and Ripple, Ripple has clearly won the claim that it is not a security. In the SEC’s upcoming meeting which is to be held on 23rd January of this year, the matter will be discussed and further clarifications will be made. If the SEC dismisses the case, the price of the XRP token will rise further.
4. Release of RLUSD Stablecoins
Ripple has launched its US dollar-based stable coin RLUSD. The stablecoin’s integration will enhance the liquidity of the Ripple network, facilitating a large number of trades with minimal slippage. The processing of RLUSD transactions both on the XRPL and XRP-EVM increases the transaction fees, thus increasing the demand for the XRP.
Is XRP a Good Investment?
XRP is the native crypto of the Ripple network. Launched in 2012, XRP has emerged as the world’s third-largest cryptocurrency. XRP has a total supply of 100 billion and among them 57 billion are circulating. Trump’s victory in the election will create a friendly environment for crypto and increase the value of cryptocurrencies including XRP. The dismissal of the legal suit between Ripple and SEC will ignite the value of XRP even further. If the cases are solved, an XRP ETF will launch soon, resulting in an increased investment. Considering the present scenario and the future forecasts, it is the best time to invest in XRP. However, do your own research before investing in any crypto assets, including XRP as the crypto market is highly volatile and involves risks.