XRP, the cryptocurrency formerly known as Ripple, has made a remarkable comeback, skyrocketing 396% in six weeks and surging to the third-largest spot in the crypto market. This recent price surge follows a three-year trading slump, leaving investors wondering if XRP is running out of steam or on the cusp of a major breakthrough.
Created to alleviate international money transfer woes, XRP serves as the backend of RippleNet, a payment service that streamlines cross-border transactions with minimal fees and quick settlements. By burning tokens for each transaction, XRP becomes scarce and more valuable over time. The addition of an XRP-based stablecoin, dubbed Ripple USD, is expected to further boost its appeal.
A possible catalyst behind the recent surge was the U.S. election results, which may lead to changes in regulatory policies favoring XRP. Gary Gensler’s departure from the SEC could pave the way for Paul Atkins to drop lawsuits against Ripple Labs and potentially introduce exchange-traded funds (ETFs) tied to XRP.
Despite potential turbulence ahead, long-term investors see serious value in XRP. The global market for border-crossing payments is massive, and even a small slice of that pie could make financial behemoths out of XRP and Ripple Labs. While volatility may persist, buying low-priced tokens today could serve investors well in the years to come.
Source: https://www.fool.com/investing/2024/12/18/should-you-buy-xrp-ripple-while-its-under-3