After reaching a 52-week high of $3.40 in mid-January, the price of XRP has now dropped over 30%, down to $2.35. This sharp correction has left many investors anxious, especially since XRP was once seen as one of the hottest cryptocurrencies earlier this year.

However, not everything is bleak. In fact, this could be a rare opportunity to 'buy the dip.' There are three core factors taking shape that promise to drive XRP's price in the second half of 2025.

1. Ripple's Bank License Plan

On July 2nd, Ripple Labs – the company behind XRP – officially submitted an application for a federal banking license to the U.S. Office of the Comptroller of the Currency (OCC). If approved, Ripple will become a federally regulated bank – an unprecedented milestone for a blockchain company.

Why is this important?

  • Ripple will have the opportunity to develop new financial products based on XRP, similar to traditional products at banks.

  • XRP has long been dubbed the 'bank's currency,' as it is primarily used in cross-border payment transactions and remittances.

  • Obtaining a banking license will help Ripple formalize this role, expanding the potential for XRP to be integrated into the mainstream financial system.

The prospect of a bank actually operating with XRP at its core is no longer fanciful – and if this happens, the value of XRP could be revalued at much higher levels.

2. Spot ETF for XRP Coming Soon?

The second pivotal factor is the potential launch of spot ETFs for XRP, similar to what Bitcoin achieved earlier this year.

  • Many major financial companies have filed for XRP ETFs, and the U.S. Securities and Exchange Commission (SEC) is expected to make a decision by mid-October.

  • According to Bloomberg, the approval rate is as high as 95%, and market predictions also suggest a 90% likelihood of success.

If the XRP ETF is approved:

  • A huge influx of capital from institutional investors could flow into XRP, as managed ETFs are the safest and most transparent way to approach.

  • JP Morgan estimates that the launch of the ETF alone could bring in $8 billion in new cash flow for XRP.

3. The “XRP Treasury Model” From Listed Companies

A new trend is emerging in the market: publicly traded companies are beginning to adopt the model of holding XRP as a strategic asset on their balance sheets, similar to how MicroStrategy has done with Bitcoin.

  • VivoPower International (NASDAQ: VVPR) kicked off with a plan to purchase $121 million worth of XRP at the end of May.

  • Other companies are currently considering following suit, as a way to increase stock valuations and attract interest from digital asset investors.

If this trend spreads, the buying power from businesses could create strong upward pressure, comparable to countries hoarding gold foreign reserves.

Reality and Expectations

Despite the very positive factors mentioned above, investors should remain cautious of hype and 'unverified rumors' surrounding Ripple and XRP.

  • Rumors about Ripple's IPO, the acquisition of Circle (CRCL), or overthrowing SWIFT to become the dominant global payment system… have all emerged in the past, but have not come to fruition.

  • The only thing that has really pushed XRP up in the last two years is the election of President Donald Trump, who has a clear stance in favor of cryptocurrency and has helped Ripple overcome many legal barriers.

Nevertheless, since January, XRP has yet to establish sustainable growth momentum. If XRP can return to the $3.84 mark – its historical peak – before the end of 2025, that would be a significant victory for medium-term investors.

Conclusion

XRP is facing short-term challenges, but the strategic fundamental factors are more positive than ever. A bank license, spot ETFs, and a wave of XRP accumulation from businesses could serve as a launching pad for the next growth phase.

However, like any cryptocurrency investment, it is important to keep a cool head and have realistic expectations. If all favorable factors unfold as expected, 2025 could be the year XRP returns to the game – not just as a mere altcoin, but as a strategic digital asset in the global financial system. #Write2Earn $XRP