XRP (CRYPTO: XRP), the native token of the Ripple blockchain, has seen an extraordinary rise of 480% over the past three months. This rally has catapulted XRP’s market cap to approximately $180 billion, solidifying its position as the third most valuable cryptocurrency globally, trailing only Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

Intriguingly, former Goldman Sachs analyst Dom Kwok recently predicted that XRP’s value might soon surpass Ethereum’s. For this to occur, XRP’s price would need to climb an additional 120%. Let’s explore XRP’s history, unique features, and potential catalysts to assess the likelihood of this monumental growth.

Trusted Brokers

Etoro

Social trading, CopyTrading, ideal for beginners.

Read Full Review

FxPro

Forex and CFD trading with advanced tools.

Read Full Review

Exness

Low spreads, instant withdrawals, easy to use.

Read Full Review

What Sets Ripple Apart in the Crypto World?

Ripple’s blockchain is engineered for real-time payments, remittance transfers, and currency exchanges. Its innovative system is a faster, cheaper, and more secure alternative to the traditional SWIFT protocol used for money transfers. Notable financial institutions like Travelex Bank, Tranglo, and Sentbe are already leveraging Ripple’s XCurrent network.

When XRP launched in 2013, Ripple envisioned financial institutions adopting it as a transaction medium. However, most users initially opted to process fiat currency payments via the XCurrent network, bypassing XRP.

XRP debuted at a modest $0.0058893 per token and surged to a peak of $3.84 in January 2018, fueled by growing interest in Bitcoin. However, its price plummeted below $0.20 in 2020 due to two major setbacks:

1. The SEC Lawsuit: The U.S. Securities and Exchange Commission (SEC) sued Ripple, alleging that XRP token sales were unregistered securities transactions. This led to XRP being delisted from major trading platforms and losing key partnerships. Grayscale even shut down its XRP Trust.

2. Lack of Scarcity and Utility: Unlike Bitcoin’s finite supply and Ethereum’s staking capabilities, XRP’s 100 billion tokens were pre-mined, with over half locked in escrow accounts. XRP can’t be mined or staked, and Ripple’s blockchain lacks the infrastructure to support decentralized apps (dApps) or other crypto assets.

These challenges gave XRP a reputation akin to a meme coin rather than a viable contender to Bitcoin and Ethereum.

0% Commission

Stock Trading

16M+

Active Traders

2500+

Financial Assets

Regulated Platform Multi-Asset

Start Trading

Why Is XRP Skyrocketing Now?

The End of Legal Woes

XRP’s legal troubles eased in August when Ripple reached a settlement with the SEC, resulting in a lighter-than-expected fine. Despite the SEC’s appeal, major trading platforms relisted XRP, and Grayscale revived its XRP Trust for accredited investors. Additionally, the launch of spot XRP ETFs by several firms renewed interest in the token.

Political and Regulatory Shifts

The 2024 U.S. presidential election marked another turning point. With Donald Trump’s victory and the appointment of crypto-friendly Mark Uyeda as acting SEC chair, the regulatory environment for cryptocurrencies appears to be loosening. Ripple has also received approval from the New York Department of Financial Services to launch a U.S. dollar-pegged stablecoin, which could attract more financial institutions to its ecosystem.

Expanding XRP’s Ecosystem

Ripple plans to integrate Ethereum-compatible smart contracts through a sidechain connected to the XRP ledger. This move aims to make XRP payments more attractive to Ethereum developers and facilitate the tokenization of real-world assets (RWAs) like real estate and artwork. Tokenizing RWAs could increase XRP’s use cases and drive adoption.

0% Commission

Stock Trading

16M+

Active Traders

2500+

Financial Assets

Regulated Platform Multi-Asset

Start Trading

Could XRP Outpace Ethereum?

Kwok’s prediction hinges on Ripple’s ability to capitalize on its regulatory wins, broaden its ecosystem, and become a key player in tokenizing RWAs. However, Ethereum’s robust foundation, encompassing a vast array of tokens, dApps, and NFTs, presents a formidable challenge.

While XRP’s potential is undeniable, expecting it to surpass Ethereum in the near future might be overly optimistic. Nonetheless, XRP’s resurgence signals brighter days ahead, making it a cryptocurrency worth watching.