XRP, the token of Ripple, has become the third-largest cryptocurrency in the market with a market cap of $168 billion. It has seen a growth of 30% in the past week due to increasing institutional interest and trading liquidity.
Reasons for XRP's Growth
XRP's significant rise is attributed to strong liquidity and community support, as well as growing institutional interest. The token has outperformed both Bitcoin and Ether in percentage terms over the past week, highlighting its potential in an evolving institutional market.
Ripple's Institutional Ambitions
On July 1, the US Federal Reserve adopted the ISO 20022 standard, to which Ripple aligned back in 2020. This provides a foundation for real-world use of XRP in regulated financial infrastructure. Additionally, Ripple launched the stablecoin RLUSD, further solidifying its position in the market. CEO Brad Garlinghouse confirmed that the company has applied for a banking license.
XRP as a Treasury Asset
Recent attention from public companies towards XRP signifies a shift from speculation to strategic investment. Companies like Trident and Webus have announced plans to allocate significant funds towards XRP reserves. As liquidity and trading volumes continue to rise, XRP is increasingly being viewed as a treasury and settlement asset.
XRP shows significant growth and attention from institutional investors, indicating its potential for future success. Ripple's positioning as a regulated player in the cryptocurrency market may prove key to its ongoing journey.
