XRP has shown impressive growth over the past year, rising 511%. How has this affected the crypto market and what can we expect in the future?
XRP Growth and External Factors
According to CoinGecko, XRP is up 511% yearly. In Q4 2024, its market capitalization gained 246%. The rally began with expectations of a more crypto-friendly stance. For years, XRP prices were muted due to the Ripple SEC lawsuit, which concluded in 2023. In August, Ripple was fined $125 million, effectively ending the lawsuit. Increased retail and large holder participation indicate significant whale accumulation.
Interest in XRP ETF
Anticipation surrounding an XRP ETF has also boosted prices. Ripple Labs president Monica Long mentioned that an XRP ETF might become a reality soon. Grayscale Investments has applied to the SEC to convert its XRP Trust into an ETF for listing on the NYSE. Alongside Grayscale, several firms have filed for XRP-based ETFs, showing rising institutional interest. Canadian firm Purpose Investments has filed a preliminary prospectus for an XRP spot ETF.
Looking Ahead: Can It Reach New Heights?
Due to the spike, XRP surpassed Tether to become the third largest cryptocurrency by market capitalization, trailing only Bitcoin and Ethereum. As of writing, XRP was down 1.28% over the last 24 hours at $3.09, with a market cap of $178.15 billion. Back in 2018, XRP saw a similar rise, briefly overtaking Ethereum in market cap. Currently, ETH's market cap is $404 billion, more than twice that of XRP. In terms of price, there is interest in XRP breaking past its recent high of $3.4 and reaching $4 or possibly $5. Meanwhile, the daily SMA 50 at $2.6 has acted as support since November 2024.
XRP has experienced a notable surge, significantly impacting the crypto market. Growing interest in ETFs and other factors may drive further growth, though uncertainties remain ahead. Time will tell if it can reach new heights.
