4 Justifiable Factors Suggesting an Exponential Rise in XRP by 2025
The cost of XRP (XRP up by 15.57%) has skyrocketed over 122% higher (as of Nov. 19) post-election night, significantly surpassing the performance of the world's leading cryptocurrency, Bitcoin (BTC gaining 4.79%). The cryptocurrency market has witnessed an upward trend, with President-elect Donald Trump's supportive stance towards the crypto sector and promises of policy changes that could benefit the industry and bring the spotlight back to the U.S.
Although I believe the sector could continue its successful run with a more accommodating regulatory environment and lower interest rates, XRP appears to have exceptional potential. Here are four reasons why XRP may experience exponential growth by 2025.
1. Robinhood's involvement
The well-known online brokerage Robinhood recently introduced XRP trading on its platform for its over 24 million funded users, who manage a total of $152 billion in assets. Robinhood has traditionally been cautious about introducing new tokens due to potential regulatory issues from the U.S. Securities and Exchange Commission (SEC).
However, with Trump expected to reshape the SEC, regulatory concerns might diminish, providing Robinhood more flexibility to list additional tokens. The addition of XRP to the platform would likely increase retail investors' exposure to XRP, as Robinhood is renowned for its user-friendly interface.
2. XRP-focused ETFs
The introduction of Bitcoin and Ethereum spot exchange-traded funds (ETFs) led to significant price increases for both cryptocurrencies. ETFs can help increase cryptocurrency liquidity and exposure by making investing simpler. Traditionally, purchasing cryptocurrencies involves digital wallets and remembering complicated passwords. ETFs, on the other hand, can be purchased and traded like shares and can be found on various stock trading platforms and even retirement accounts.
Companies like Bitwise are currently preparing to launch XRP-focused spot ETFs, although they have not yet received approval. Ripple Labs CEO Brad Garlinghouse recently commented that a spot XRP ETF is inevitable.
3. Termination of the SEC lawsuit
XRP, Ripple, and the creators of XRP, Garlinghouse and Larsen, have become synonymous with an ongoing SEC lawsuit that aims to expand regulatory control over cryptocurrencies. The SEC contends that it should have more involvement in cryptocurrency regulation due to their speculative nature and designation as securities. This perspective could require increased regulatory requirements such as SEC registration and reporting obligations for crypto networks.
Crypto supporters argue that the SEC is overstepping its boundaries and that cryptocurrencies should be regulated as commodities overseen by the Commodity Futures Trading Commission.
Ripple, its founders, and XRP have found themselves in the middle of this dispute. In 2020, the SEC initiated litigation against the parties for allegedly selling XRP as an unregistered security in 2013. A judge ruled in favor of the defendants, but the SEC subsequently appealed parts of the case. The case is expected to conclude in 2025, and while I'm not a lawyer, a favorable result seems probable.
The lawsuit has served as a drag on XRP's price, so a formal resolution would likely be beneficial.
4. XRP's underperformance
Despite a recent price surge, XRP still lags behind its peers in the larger cryptocurrencies, such as Bitcoin and Ethereum, as well as meme tokens like Dogecoin. Part of this can be attributed to the lawsuit. Nevertheless, XRP benefits from its early entry and a compelling use case in offering companies faster cross-border payment solutions.
Additionally, XRP has a fixed supply, which is not common among all cryptocurrencies. This feature could make XRP an attractive inflation hedge, which might be valuable under Trump's expected inflationary policies. Given its current underperformance, XRP may have significant room for growth, particularly if market conditions remain advantageous for the sector.
Investing in XRP could be a promising move with Robinhood's recent addition of XRP trading on its platform, potentially increasing retail investors' exposure to the cryptocurrency. Furthermore, the potential launch of XRP-focused ETFs, such as those being prepared by Bitwise, could increase cryptocurrency liquidity and make investing in XRP simpler and more accessible for a wider range of investors.
