Analysts attribute XRP's emergence as the third-largest cryptocurrency by market capitalization to regulatory changes and optimism about Ripple's ecosystem expansion.
What happened: In a conversation with Benzinga, industry experts said how the growth of Ripple's XRP/USD business, including the launch of the RLUSD stablecoin, and a potential change in SEC leadership will drive demand for XRP. It emphasizes how it is promoted.
In a note to Benzinga, Viget Research principal analyst Ryan Lee pointed to the ongoing legal battle between Ripple and the SEC as a key driver of market sentiment.
“XRP price could rise further if there are positive developments in the litigation, such as Gary Gensler's resignation or a favorable settlement,” he said.
Shivam Thakral, CEO of BuyUcoin, highlighted that the price of XRP soared 40% in less than 24 hours, pushing its market capitalization to over $156 billion.
Thakral attributed the surge to a more crypto-friendly regulatory environment under the Trump administration, as well as expectations for significant inflows into the market.
“Investor confidence is also increasing due to the expectation that the US Federal Reserve will cut interest rates,” he added.
Also read: Donald Trump could announce SEC chairman pick tomorrow: Report
The growth of Ripple’s RLUSD stablecoin and its broader ecosystem is driving demand for XRP.
According to Lee, Ripple’s partnerships with financial institutions and the token’s integral role in its infrastructure will directly impact XRP’s valuation.
Alex Kupczykevich, market analyst at FxPro, noted that while the XRP price has stabilized at $2.6, a level not reached since 2018, a correction is likely at this point.
He also pointed to the possibility of introducing XRP-related ETFs as a future catalyst.
XRP has gained 286% since the beginning of the year, significantly outperforming Bitcoin BTC/USD and Ethereum ETH/USD.
What’s Next: Ripple’s rise has brought it back to the $2 level for the first time in nearly seven years, with a market capitalization of over $136 billion.
Ripple's expansion into stablecoins and cross-border payments, coupled with optimism surrounding a change in SEC leadership, has strengthened investor sentiment.
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