XRP, a digital currency long associated with the controversy surrounding Ripple, has seen a surge of 370% since President-elect Trump’s pro-crypto promises. This rally comes as Bitcoin has climbed 46% and the broader crypto market has gained 93%, with XRP surpassing Solana to become the third largest cryptocurrency by market value.
Matt Hougan, chief investment officer at Bitwise Asset Management, attributes XRP’s recent success to regulatory tailwinds, saying it was a “rational response” to Trump’s promises. The latest advance is a victory lap for XRP’s most vocal supporters, who have remained faithful despite the ongoing battle with the Securities and Exchange Commission.
XRP was created in 2012 by Ripple’s founders as the native token of its open-source XRP Ledger, used in cross-border payments outside the US. Ripple holds the majority of XRP coins, and several firms, including Bitwise and WisdomTree, have applied to issue XRP exchange-traded funds.
However, not everyone is optimistic about XRP’s future prospects. Alex Thorn, head of research at Galaxy Digital, described it as “just a blast from the past,” citing its lack of product market fit and high valuation compared to major corporations. Despite this, Hougan believes XRP has a unique consensus mechanism that can sustain community interest, even in regulatory uncertainty.
Hougan sees the removal of regulatory headwinds as an opportunity for XRP to prove itself in the business world, where it can utilize its low-cost, functioning blockchain technology. As regulatory clarity becomes clearer under Trump’s administration, Hougan expects to see more investment in XRP, driven by its strong foundation and engaged community.
For now, XRP remains a closely watched asset as it seeks to capitalize on the promise of Trump’s crypto-friendly policies.
Source: https://www.cnbc.com/2024/12/14/xrp-is-the-biggest-winner-of-the-trump-trade-but-investors-are-split-on-how-far-its-rally-can-run.html