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XRP is one of the “dinosaur cryptocurrencies” that reemerged after Donald Trump’s victory.
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Next year, ETFs based on the Ripple cryptocurrency could hit the market.
Donald Trump’s victory in the United States elections revived investor enthusiasm for the digital asset market.
In the days after the elections, and while bitcoin (BTC) continued to record all-time highs (ATH), other trends emerged in the market such as the resurgence of “dinosaur cryptocurrencies”, those longest-lived assets that seemed relegated to oblivion. Among them, XRP stands out as one of the protagonists.
According to analyst Marija Matic, this resurgence is due to the potential these assets have to serve institutional clients, rather than focusing on retailers.
In this context, the cryptocurrency issued by the company Ripple Labs once again traded above $2, levels that were not seen 7 years ago.
The optimism around XRP did not stop there. Expectation remains intact after the launch of RLUSDthe Ripple Labs stablecoin. As NoticiasVE already reported, it is a stable currency that has 1:1 parity with the dollar and is backed by deposits of bonds issued by the United States government and assets equivalent to cash, to ensure stability and asset liquidity.
In addition to the milestone that its launch represented, Ripple is positioned as a direct competitor to Tether and Circle, the companies behind USDT and USDC, respectively, in a stablecoin market that already exceeds $150 billion.
For Arthur Azizov, CEO of the company B2Broker, RLUSD offers “an additional boost to the growth of XRP.” For this reason, he projects that the price of that cryptocurrency may rise between $5 and $7 during the first half of 2025.
One fact worth highlighting is that RLUSD is issued on both Ethereum and XRP Ledgera decentralized network that uses XRP for the payment of commissions.
As interest in the stablecoin grows, operations in that environment will increase and, therefore, the adoption of XRP. That factor acts as a price catalyst for the cryptocurrency.
For this reason, Azizov highlights that the stablecoin provides a new boost to the price of the Ripple Labs cryptocurrency.
Jacobo Maximiliano, trader and analyst at the Bitget exchange, projects that the price of XRP could reach a maximum of 7 dollars in this cycle.
If these projections come true, XRP will not be able to displace ether (ETH), Ethereum’s native cryptocurrency, as the second most valuable asset on the market. To achieve this, Its price should exceed $8.30.
The possible launch of XRP ETFs
In addition to the mass adoption of RLUSD, another factor that can act as a price catalyst is the launch of XRP-based exchange-traded funds (ETFs).
As reported by NoticiasVE, throughout his presidential campaign, Trump adopted a stance in favor of cryptocurrencies and promised to promote clear regulation to encourage the growth of the industry on US soil. This approach generated positive expectations within the sector.
In this context, with the change of government on the horizon, the head of the United States Securities and Exchange Commission (SEC), Gary Gensler, announced that he will leave office on January 20, 2025, which means a good news for cryptocurrencies.
His place will be taken by Paul Atkins, whom Trump defined as “a proven leader on common sense regulations.”
His mandate at the head of the SEC could change the landscape for cryptocurrencies in that country. Clear and favorable regulation for the sector It will be key for more companies to launch investment products based on digital assets on the market.
This may be beneficial for XRP, because some companies such as Canary Capital or Bitwise submitted applications to the SEC to list their ETFs based on that cryptocurrency.
If ETFs come to market, and perform well, the price of XRP will see a significant increase. What happens is that, due to its operation, Companies that manage these financial products must maintain the underlying asset in their treasuries to support their actions. This reduces the amount of XRP available on the market.
Due to the law of supply and demand, purchases of Ripple Labs currency by ETF management firms will drive its price upward.