The Ripple (XRP) currency has recently seen strong market performance, driven by President Trump's statement that it is a candidate for the national reserve. This has occurred amid increasing institutional interest and significant market inflows. Speculation about the reserve has fueled optimism.
Ripple Labs is the main entity behind this project, led by Brad Garlinghouse, the CEO, and David Schwartz, the CTO. The company aims to make XRP a layer of liquidity and settlement, rather than being digital gold.
XRP is not digital gold, but a liquidity layer that makes digital gold tradable, transportable, and composable on blockchain pathways. XRP was designed as a settlement asset to direct liquidity, and it fulfills its purpose accurately. While gold and Bitcoin serve as stores of value, XRP's strength lies in its utility in transactions, enabling over 1.5 million daily transactions with unparalleled speed and efficiency. - Favio Vilardi, from Sologenic.
Section
This proposal has led to a significant shift in market dynamics. XRP saw a notable price increase, ranging from approximately 16% to 40% from its lows in April. This reflects increased market confidence and a strong accumulation phase amid bullish signals.
The financial implications could be severe, with XRP recording net inflows of $37.7 million into global cryptocurrency funds over the past week. This contrasts with ETH and BTC, which saw outflows, indicating renewed investor interest in XRP.
Section
Market watchers are assessing the potential implications of XRP on the regulatory environment. Ripple's settlement with the U.S. Securities and Exchange Commission in April 2025 provided regulatory clarity, which boosted the relisting of currencies on exchanges and enhanced institutional engagement.
Investment analysts expect further institutional adoption, likely driven by the development and use of ETFs by governments. Historical trends have shown a correlation between cryptocurrency fund inflows and these regulatory developments, which may indicate a significant shift in cryptocurrency adoption patterns.