XRP has experienced a significant surge in November 2024 due to political factors and developments within its ecosystem.
The cryptocurrency market saw a boost after Donald Trump's election victory, as he was seen as pro-crypto and expected to improve regulations for the industry in the United States. This political backdrop has increased investor sentiment and positioned XRP as an important player in the digital asset landscape.
XRP reached a seven-year high of around $2.90 on December 3, 2024, but then experienced a pullback due to being overbought. Despite this, there are several catalysts that are expected to sustain investor interest in XRP going into 2025.
The approval of Ripple's RLUSD stablecoin by the New York Department of Financial Services (NYDFS) on December 10 is expected to drive demand for XRP. The RLUSD stablecoin will settle on the XRP Ledger (XRPL) and the XRP-EVM sidechain, creating a cycle that benefits XRP holders. Each transaction will result in a portion of XRP being burned, enhancing its scarcity and potential value. The RLUSD stablecoin will be overcollateralized by fiat cash reserves and short-term cash equivalents, maintaining a 1:1 peg with the US dollar. This structure instills confidence in the stablecoin's stability and positions XRP as a critical component.
Institutional interest in XRP has also increased, with asset management firms filing for an XRP exchange-traded fund (ETF). The potential approval of an XRP ETF could attract institutional investment and solidify XRP's position in the market.
XRP's market capitalization is currently around $138 billion, making it the fourth-largest cryptocurrency.
The combination of political support, institutional interest, and the launch of the RLUSD stablecoin positions XRP for a promising future as a bridge asset in the digital economy. The developments surrounding XRP will be closely monitored in 2025.