From November 2024 to February 2025, cryptocurrency investors witnessed a spectacular performance from XRP (CRYPTO: XRP). In just 3 months, the price of XRP soared from 0.50 USD to 3.40 USD. Although the price has slightly adjusted to around 3 USD, there are still at least two important factors that could trigger a strong new price rally for this currency.
1. XRP Spot ETF – A Major Boost for the Market
While XRP holds the third position in market capitalization, it has never been a favorite choice for institutional investors. The main reason is that there has not been a convenient, low-cost investment tool for them to access XRP. Buying XRP directly means they have to delve deep into the 'deep waters' of the crypto market, which many institutions are not ready for.
The introduction of the XRP spot ETF will fundamentally resolve this issue. At that point, buying XRP will be as simple as buying any other ETF. According to Bloomberg, the likelihood of the XRP spot ETF being approved by the SEC this year is up to 85%, while online prediction markets also estimate a success rate of around 78%. If all procedures are completed on schedule, these ETF funds could begin trading by the end of 2025.
According to forecasts from JPMorgan Chase, the XRP spot ETF could attract up to 8 billion USD in new capital flows. History has shown the positive impact of the Bitcoin spot ETF at the beginning of 2024 when it helped Bitcoin achieve strong growth. Therefore, many analysts expect XRP to have a similar scenario, potentially even more impressive as it becomes the 'star' of the altcoin ETF wave, outperforming competitors like Solana (SOL) or Litecoin (LTC).
2. Wave of Acceptance from Institutions
XRP is not just a cryptocurrency but also the core blockchain platform of the Ripple payment network. Currently, Ripple is promoting several strategic projects to increase the practical application of XRP.
One of the highlights is the initiative to tokenize real-world assets (RWA), prominently featuring the collaboration between Ripple and BlackRock to tokenize U.S. Treasury bonds on the XRP blockchain, enabling quicker and more transparent transactions.
Additionally, Ripple is expanding into the stablecoin space. By the end of 2024, Ripple launched Ripple USD (RLUSD) – a stablecoin designed to drive demand for XRP. Within just a few months, RLUSD achieved a market capitalization of 600 million USD and ranked among the top 110 cryptocurrencies.
Brad Garlinghouse – CEO of Ripple – has even stated that XRP could become a global payment platform competing directly with SWIFT, replacing a technology system that is over 50 years old, providing superior processing speed and significantly lower costs.
3. Risks and Necessary Caution
Despite its great potential, XRP still carries significant risks. The price of XRP sometimes fluctuates in a 'meme coin' manner – heavily influenced by crowd psychology and rumors. A typical example is the speculation about Ripple's impending IPO, even though the company's leadership has repeatedly denied it.
More importantly, the protracted lawsuit between Ripple and the SEC is still not fully resolved. This is a factor that could directly impact the approval timeline for the XRP spot ETF. Only when the legal issues are definitively resolved can the SEC give the green light for this product.
4. XRP Price Outlook
Standard Chartered Bank predicts that the price of XRP could reach 5.50 USD in 2025 and 12.50 USD by the end of 2028. While this is an ambitious forecast, a scenario of doubling the price of XRP within the next 12 months remains entirely feasible.
If the XRP spot ETF is approved and Ripple's blockchain initiatives are widely implemented, XRP could become the cryptocurrency with the highest potential growth in the upcoming period.
Conclusion: With two strong drivers being the XRP spot ETF and the wave of acceptance from institutions, XRP stands on the brink of a golden opportunity to break out. However, investors still need to closely monitor legal developments and avoid getting swept up in 'rumor waves' to formulate the most reasonable strategy.
