XRP emerged as one of the biggest winners in the cryptocurrency space following the 2024 U.S. elections. However, after a significant surge, its price has now stabilized, raising questions about the asset's future.
XRP Market Analysis
XRP experienced an impressive increase of 445.15% between November 5 and December 2, 2024, delivering a 281.7% monthly return in November alone. Despite significant milestones like the SEC settlement, XRP has since traded sideways, causing concern among traders and analysts.
Ripple’s Control Over XRP
Crypto analyst Jose Luis Cava pointed out that Ripple’s significant control over XRP volume restricts organic price movement. Currently, around 35% of XRP’s total supply is held in escrow, 7% is in Ripple’s wallets, and at least 2% circulates under the company's control.
Low Institutional Demand
XRP may have outperformed BTC and ETH on an annual basis, yet it still struggles with low institutional demand. In contrast, Bitcoin and Ethereum continue to dominate the market due to wide acceptance and strong institutional backing. The status of XRP's ETF applications remains uncertain.
The situation with XRP is complex due to its centralization and low institutional interest. For confidence in the asset to be restored, Ripple needs to address key issues related to transparency, real-world adoption, and token centralization.
