XRP, the native cryptocurrency of the XRP Ledger, is experiencing significant momentum heading into 2025. With a maximum supply of 100 billion tokens and approximately 57 billion XRP in circulation, the asset has been making waves, particularly after a historic rally in November 2024. This surge in value can be attributed to a combination of political factors and exciting developments within the XRP ecosystem.
In early December 2024, XRP reached a seven-year high of $2.90, spurred by strong market sentiment and investor optimism. Despite a slight pullback after the Relative Strength Index (RSI) signaled that the asset was overbought, the outlook for XRP remains bullish. Many analysts believe that upcoming events will continue to drive demand for XRP in the near future, especially the launch of Ripple’s RLUSD stablecoin.
Georgios Vlachos, co-founder of Axelar, an open-source interoperability platform, explained that the RLUSD stablecoin will likely have a significant impact on XRP’s demand in 2025. As the RLUSD stablecoin will settle transactions and remittances primarily on the XRP Ledger (XRPL) and the XRP-EVM sidechain, the demand for XRP is expected to surge.
“When you do those transfers, you pay for gas in XRP,” Vlachos said, adding that XRP holders will benefit from the burn mechanism with every transaction on the network.
In addition to the stablecoin news, XRP’s price was also positively impacted by political developments in the U.S. Following Donald Trump’s electoral victory on November 5, 2024, the cryptocurrency market saw an uplift, driven by the promise of a more crypto-friendly regulatory environment. Furthermore, XRP’s recent inclusion in the ETF race, with asset management firm WisdomTree filing for an XRP ETF, has further fueled investor excitement.
With XRP’s market capitalization now standing at approximately $138 billion and the impending RLUSD launch, XRP’s growth potential remains high for 2025.
Also Read: Ripple’s RLUSD Stablecoin, $1,200 Bid Signals Potential Volatility Ahead of Launch
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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