This article examines the key factors that may influence XRP's price leading to 2025, including regulatory aspects, institutional adoption level, and the need for technological upgrades.
Regulatory Changes as an Influential Factor
According to Forbes contributor Zennon Kapron, regulation remains a primary catalyst for XRP, especially following Ripple's settlement with the SEC, which reduced the fine to $50 million. Although the agreement has been reached, final court approval is still pending.
Recently, the judge rejected the updated settlement terms due to procedural inaccuracies; however, Ripple’s senior attorney clarified that this does not affect the deal or the company's prior court victories.
Real-World Application and Utility of XRP
Ripple Payments, formerly known as On-Demand Liquidity, uses XRP as a bridge asset for international payments, providing a concrete use case that may boost transaction volume. Institutions have the option of using either XRP or Ripple’s stablecoin RLUSD, raising concerns about the token’s diminishing role in the ecosystem and limiting its utility growth.
Some analysts suggest that institutions may prefer private or fiat-backed alternatives, which could negatively impact the token's utility development.
Need for Technological Upgrades
XRP’s advantages, such as low transaction fees and high processing speed, are no longer unique selling points in the cryptocurrency market. Competing blockchains and Layer-2 solutions have closed this gap, requiring continuous technological improvements from Ripple. Kapron emphasized that the coin’s underlying technology must evolve to remain competitive, and the development roadmap should include protocol upgrades enhancing scalability and privacy features, alongside establishing interoperability bridges with other major blockchains.
The analysis shows that to enhance XRP's value, important factors remain regulatory changes, real-world application, and the need for continuous technological development. Support from institutional adoption also plays a key role in the token's future.
