In a comprehensive analysis, Bitwise has spotlighted the increasing mainstream acceptance of crypto assets, marking significant achievements with Bitcoin and Ethereum spot ETFs. This discussion aims to explore why Bitwise perceives XRP as occupying a distinctive position and why it believes XRP holds substantial potential for growth.
2024: A Landmark Year for Crypto Assets
The year 2024 has been transformative for the crypto industry, witnessing the transition of digital currencies into the mainstream. With the successful debut of Bitcoin and Ether spot ETFs, the possibility of Solana and XRP ETFs launching next appears promising. Bitwise has identified five critical aspects of XRP that underscore its potential.
Track Record and Market Position
Bitwise highlights XRP’s enduring presence as one of the top five cryptocurrencies by market capitalization globally. Notably, XRP has outperformed Bitcoin during two consecutive bull market cycles, a feat only shared by Dogecoin and, to a lesser extent, Ethereum. This track record positions XRP as a resilient and promising asset in the crypto market.
Significant Investor Interest
Bitwise has observed a marked increase in retail interest for XRP, supported by relative Google search data. This interest is further corroborated by a recent EY survey, which places XRP among the top four crypto assets favored by retail investors. US spot crypto ETFs are largely driven by retail investors, indicating potential interest in the proposed spot XRP ETFs in the US.
XRP Poised for Advantageous Growth
Bitwise asserts that XRP is well-positioned to benefit from the evolving US regulatory landscape, especially with the impending departure of SEC Chairman Gary Gensler in January 2025. Since the US election on November 5, 2024, XRP has already seen a significant rally of +188%, reflecting its capacity to capitalize on regulatory changes.
XRP’s Diverse Use Cases
Bitwise emphasizes XRP’s extensive real-world applications, mainly centered around cross-border remittances and general payment solutions. Ripple’s collaborations with entities like SBI Remit and MoneyMatch exemplify innovations in instant cross-border transactions. XRP’s rapid payment finality of approximately 4 seconds and its capacity to process up to 1,500 transactions per second underscore its potential impact on the global payments market.
XRP: A Valuation Perspective
Despite XRP’s impressive performance following the US elections, Bitwise asserts that XRP remains reasonably valued. The Market Value-to-Realized Value (MVRV) metric indicates that there is still substantial upside potential for XRP, suggesting that its current valuation does not reflect an overvaluation.
XRP: The Next Big Thing!
In light of these considerations, Bitwise envisions XRP as a strong candidate for the next wave of spot ETF approvals in the US, with significant growth potential. Additionally, Ripple’s strategic investment in Bitwise’s XRP exchange-traded product (ETP) has generated considerable interest within the crypto community. Ripple’s financial support for Bitwise’s GXRP ETP signifies a calculated move towards the institutionalization of XRP, further bolstering its prospects.
