XRP experienced a breakthrough growth after the 2024 U.S. election, but currently, the price of this coin is in a sideways state, raising many questions about future prospects.
Despite achieving a more than 445% increase in just one month, XRP has not been able to continue its upward trend due to factors such as Ripple's control over Token supply and low institutional demand making it difficult for the market to break out strongly.
MAIN CONTENT
XRP surged after the 2024 U.S. election thanks to favorable political and legal developments.
Ripple still maintains significant control over XRP supply, limiting natural price volatility.
Institutional demand for XRP is still low, reducing its attractiveness compared to Bitcoin and Ethereum.
How has the XRP market developed after the 2024 U.S. election?
Cryptocurrency analyst Jose Luis Cava emphasizes that XRP has increased by 445.15% just one month after the 2024 U.S. election, outperforming many other major cryptocurrencies.
The year 2025 becomes important as Ripple completes its legal agreement with the U.S. Securities and Exchange Commission (SEC), paving the way for broader adoption. However, amidst these rapid increases, XRP has remained almost stagnant in the following months, causing many concerns in the trading community.
How does Ripple's control over XRP supply affect its price?
Expert Jose Luis Cava points out that Ripple still retains significant control, with about 35% of the supply locked in monthly escrow and an additional 7% in the company's wallet, making it difficult for XRP's price to fluctuate naturally according to market demand.
"Ripple's maintenance of control over supply creates a significant barrier to the natural development of XRP's price, limiting volatility according to actual supply and demand."
Jose Luis Cava, Cryptocurrency Analyst, 2024
This control makes many investors concerned about concentration and transparency, negatively affecting trust and the sustainable growth potential of XRP.
How does institutional demand impact XRP currently?
Despite its outstanding price growth performance, XRP has not yet received significant attention from financial institutions compared to Bitcoin and Ethereum, whose ETF market capitalizations in the U.S. are $135.5 billion and $9.01 billion, respectively.
The spot ETF application for XRP is still awaiting approval from the SEC, which is expected to be clear by the end of 2025. The lack of this ETF is one of the main reasons institutional investors are temporarily cautious about XRP.
How controversial is XRP's dual ledger system?
XRP possesses a dual ledger system, including a public ledger for individual users and a private ledger for central banks, leading to debates in the cryptocurrency community about decentralization.
This has led many analysts to express skepticism and suggest that XRP's transparency may be affected. There is still no official information regarding Ripple's plans to merge these two systems.
What are the directions and prospects for XRP in the future?
Experts believe XRP may struggle to escape a sideways price action if Ripple does not improve transparency, enhance real-world applications, and reduce centralized control over Token supply.
The investment community is hoping Ripple will enhance transparency, build practical use cases, and move towards greater decentralization to strengthen trust and promote long-term growth for XRP.
"Transparency and decentralization are key factors for XRP to develop sustainably and attract the interest of institutional investors in the future."
Cryptocurrency expert An Nhan, 2025
Frequently Asked Questions
How has XRP grown after the 2024 U.S. election?
XRP increased by 445.15% in the first month after the election, thanks to favorable legal outcomes and a positive political attitude in the United States.
Why is XRP's price currently in a sideways state?
Ripple controls about 44% of the total XRP supply, making it difficult for the price to move naturally according to market supply and demand factors.
What is the institutional demand for XRP?
XRP does not yet have an approved spot ETF, leading to less interest from institutional investors compared to Bitcoin and Ethereum.
Does XRP's dual ledger system have any impact?
This system raises concerns about transparency and decentralization, leading many to question the decentralization of XRP.
What does XRP need to do to grow stronger?
Ripple needs to enhance transparency, increase real-world applications, and move towards decentralized governance to improve market confidence.
Source: https://tintucbitcoin.com/xrp-mat-da-tang-giua-thi-truong-chung/
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