XRP has seen significant gains since early November, rising about 400% and briefly trading above $2.70 before retreating to its current levels of around $2.30. The surge is attributed to President-elect Donald Trump’s pro-crypto stance, including his intention to make the US the “crypto capital of the planet.”
The Biden administration had previously accused XRP of violating securities laws, but Trump’s expected appointment of Paul Atkins as SEC chair may lead to a friendlier regulatory environment for the token. In 2020, the SEC filed a lawsuit against XRP, which was later dropped under Gensler’s predecessor.
A judge ruled in favor of XRP last year, and now that Gensler is leaving, the SEC is unlikely to pursue an appeal. While this development bodes well for XRP, the author remains skeptical about its long-term value. The token’s primary benefit lies in fast and cheap transactions, which could reduce banking fees from $193 billion to around $10-20 billion annually.
However, even if XRP gains widespread adoption, its market capitalization of over $130 billion may not be justified by its inherent value. Furthermore, banks are unlikely to adopt XRP solely due to its network costs. As such, the author advises caution and suggests that investors consider alternative cryptocurrencies like Bitcoin, which has a stronger long-term prospect.
Source: https://www.fool.com/investing/2025/01/08/should-you-buy-xrp-while-its-under-3