XRP Price Rises Again, What's the Cause?

2025-01-14

XRP Price Rises

Bittime - In recent times, XRP price rose significantly, even entering the list of assets with the best performance on the market.

Last week, when the market crashed, XRP rose more than 6% to reach a high of $2.50. What caused XRP price rise amidst the market crash? Read this article to find out!

XRP Price Rises

Hangry XRP has risen in recent months. In December 2024, the token reached its two-year high price of $2.70.

Even though it was corrected to $1.96, XRP quickly recovered and touched $2.50 again.

Since November 2024, the price of XRP has surged nearly 400%, outperforming many other crypto assets.

Causes of XRP Price Rises

Here are some causes of XRP price rises in recent times.

1. Whale Activity

One of the causes of the increase in the price of XRP is the activities of whales. Within two days, XRP whales are known to have accumulated more than one billion XRP, with a total value of $2 billion.

This large flow of funds created a “supply shock” that increased market sentiment and pushed up the price of XRP. When supply decreases and demand increases, prices move up significantly.

2. Regulatory Optimism

Over the years, XRP faced legal challenges with the US SEC. With the resignation of SEC Chairman Gary Gensler, XRP was able to settle the case regarding the status of the securities.

This optimism towards more crypto-friendly regulations succeeded in allaying investors' concerns, which ultimately pushed the price of XRP up.

3. Launch of Stablecoin RLUSD

Ripple has launched the RLUSD stablecoin, which is backed by the US dollar and other assets. This stablecoin is designed to facilitate cross-border payments and is integrated directly with the XRP Ledger.

Stablecoins this is expected to increase XRP's utility and attract the interest of institutional investors, as well as create additional demand for XRP.

4. Potential XRP ETF

The possible launch of an XRP ETF is also why the price of XRP is rising. Based on data from Polymarket, the chance of XRP ETF approval reaches 70%.

If an XRP ETF is approved, XRP could potentially follow in Bitcoin and Ethereum's successful footsteps through ETF launches. This will not only increase XRP's legitimacy in the market, but also make it easier to access for retail and institutional investors.

Conclusion of XRP Price Rises

XRP price rises when the market was crashing, proving the great potential this project has. With increasing utility, institutional investor support, and regulatory optimism, XRP continues to be one of the promising cryptocurrencies.

Despite some challenges, the combination of institutional support and favorable market conditions suggests that this XRP rally is not over and will continue.

XRP FAQs

What is XRP and what is its use?

XRP is a digital asset created by Ripple Labs and designed to facilitate cross-border payments. XRP blockchain technology enables transactions in just a few seconds with very low fees making it ideal for international money transfers and micropayments.

What is the Difference Between XRP and Other Cryptocurrencies Like Bitcoin?

XRP supports a cross-border payment system with a focus on speed and cost efficiency, different from Bitcoin which functions more as a store of value and investment tool. In addition, XRP uses a consensus mechanism that does not require mining so it is more energy efficient.

How much is 1 XRP USD?

Currently, 1 XRP is worth $2.57 according to Coinmarketcap.

How to Buy Crypto with Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

BizTech Internationa, XRP Price Surges Again: What’s Driving This Rise?, accessed January 14, 2025.

coinmarketcap, Coinmarketcap XRP Currency, accessed January 14, 2025.

Author: IPR

XRP

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.