XRP’s Comeback: A Rollercoaster Ride with Hope
The crypto market has been a wild ride lately, with a recent plunge sending shockwaves through the industry. While most altcoins took a tumble, XRP stood strong, showing surprising resilience. Its price drop was significantly smaller than other top altcoins, and market indicators suggest it’s holding its ground. Could XRP be making a comeback?
XRP’s Surge
Crypto influencer Wise Advice has noted a significant boost in XRP’s value. Over the past two weeks, XRP’s price has surged by 66%, with a 27% increase over the past month. This surge has reignited hope among XRP supporters, with rumors swirling about a potential early approval for an XRP ETF.
Activity on the XRP Ledger
Wise Advice also highlighted a surge in activity on the XRP Ledger. The creation of new addresses and the number of active addresses have reached their highest levels since March. One day saw 1,721 new wallets created, while another day peaked at 47,000 active addresses. Plus, large investors, or “crypto whales”, have bought over 140 million XRP worth $84 million, further boosting the overall growth.
SBI Holdings and Ripple: A Strong Partnership
SBI Holdings, a major supporter of XRP, is planning a joint venture with Franklin Templeton to potentially introduce Bitcoin ETFs to Japan and Ripple ETFs to the U.S. SBI Holdings has a long history of backing Ripple, starting in 2016 with the creation of SBI Ripple Asia and collaboration with Japanese banks. This suggests SBI Holdings could be a strong advocate for an XRP ETF.
Challenges Ahead
Despite the positive momentum, there are challenges to the immediate approval of an XRP ETF. At the Bitcoin Conference 2024, Robert Mitchnick, BlackRock’s Head of Digital Assets, expressed skepticism about the near-term approval of Solana and Ripple ETFs, citing their lack of maturity and liquidity. The ongoing SEC lawsuit against Ripple, which began in 2020 over claims of unregistered securities offerings, remains a major hurdle. XRP lawyer Fred Rispoli expects the case to wrap up by the end of this month, possibly by July 31, 2024.
The Path Forward for XRP ETFs
For an XRP ETF to be approved, there needs to be strong demand, regulatory support, and enough market liquidity. Currently, XRP’s trading volume is much lower compared to Ethereum, which could be a challenge. However, there’s speculation that Donald Trump might include Solana and Ripple ETFs in his presidential campaign, potentially speeding up their approval if he wins.
XRP at a Crossroads
In short, while XRP’s recent growth is impressive and there’s potential for an ETF in the future, several challenges need to be overcome, including regulatory approval and increased market liquidity. It’s a wait-and-see situation, and only time will tell if XRP can overcome these hurdles and reach its full potential.
What’s your strategy for XRP? Do you think it’s a good time to hold on tight or cut your losses? Share your thoughts in the comments below!
