The cryptocurrency market is experiencing a strong growth period. Surprisingly, the center of this upward wave is not just Bitcoin - despite its price doubling over the past year - but also XRP, a digital currency that has recorded an increase of nearly 500% during the same period.
As of August 12, the price of XRP exceeded $3.25, leaving many investors wondering: Can XRP surpass the $4 mark for the first time in history?
This optimism comes from a range of factors - from Trump administration policies that are friendly to cryptocurrencies to a series of positive news directly related to XRP.
📈 Driven by politics and the market
President Donald Trump pledged to support the cryptocurrency industry during his campaign, and since taking office in January, his administration has taken several concrete steps:
Issuing an executive order to create a clearer legal framework for the cryptocurrency industry.
Creating a strategic reserve fund for Bitcoin and other digital assets.
An executive order has recently been signed to expand 401(k) portfolios to include alternative assets such as cryptocurrencies.
While the impact of adding cryptocurrencies to 401(k) plans may not be immediately clear, it is a sign that cryptocurrencies are finding their way deeper into the traditional financial system.
⚖️ XRP escapes the legal shadow
Another important factor is the end of the historical lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC).
Since late 2020, the U.S. Securities and Exchange Commission (SEC) has been suing Ripple for selling XRP to exchanges and institutional investors. After a 'half-win, half-loss' ruling in the summer of 2023, both parties appealed the ruling. But now, Ripple and the SEC have agreed to withdraw all appeals, officially ending the more than three-year legal battle.
This removes the biggest barrier to XRP, paving the way for institutions, corporations, and potential governments to adopt XRP and the XRP Ledger for cross-border transactions - which was Ripple's original intent.
💡 New catalysts: The instant exchange-traded fund for Ripple (XRP)
One noteworthy new driver is the potential launch of an instant cryptocurrency trading fund for XRP.
Bitcoin and Ethereum already have instant exchange-traded funds attracting massive institutional purchases. The Grayscale Bitcoin Trust ETF alone holds over 180,000 Bitcoins, which is enough to significantly affect supply and demand in the market.
As the third largest digital currency in the world, creating an instant exchange-traded fund for XRP seems like a natural step. Currently, there are at least nine applications for instant XRP exchange-traded funds submitted to the SEC, and major names like BlackRock have not officially joined yet. A decision from the SEC could come as early as this fall.
📊 Should you buy XRP while the price is still below $4?
The recent rise in XRP prices is understandable: the lawsuit has ended, market sentiment is positive, Bitcoin has reached a new all-time high, and expectations for exchange-traded funds are high. However, it is important to note the following:
XRP's market share in the global market remains small.
Cryptocurrency prices are volatile, and history shows that even when breaking new high levels, prices can correct deeply.
Therefore, XRP has upward potential if the aforementioned factors remain favorable, but it remains a highly speculative investment. Investors should:
Only allocate a small percentage of the portfolio.
Be prepared for big changes.
Stay tuned for news and policies regarding exchange-traded funds.
📌 Summary: XRP is experiencing a boom thanks to favorable policies, the end of the lawsuit, and expectations of exchange-traded funds. However, like any cryptocurrency, there are risks and opportunities. Wise investing means knowing when to rush and when to slow down.
Buy and trade from here ....
