The Mainstream Era of Crypto Assets
In an era marked by the mainstream acceptance of digital currencies, 2024 stands out as a pivotal year for crypto assets. With the successful launch of Bitcoin and Ethereum spot ETFs, the landscape is shifting. Speculation is rife that Solana and XRP ETFs could soon follow suit, marking another significant milestone in the crypto world.
Why XRP Shines Among Crypto Assets
Bitwise’s recent blog post offers compelling insights into why XRP is uniquely positioned for growth. Highlighting its robust track record, Bitwise notes that XRP continues to be a dominant player, consistently ranking among the top five crypto assets by market cap. Notably, XRP is one of the few cryptocurrencies to outperform Bitcoin in two consecutive bull market cycles, a feat only mirrored by Dogecoin and, to some degree, Ethereum.
Significant Investor Interest
Bitwise has identified a significant uptick in retail investor interest in XRP, as evidenced by Google search trends. According to a survey conducted by EY, XRP ranks among the top four crypto assets in terms of retail investor allocation. This suggests a strong potential for XRP spot ETFs to attract considerable interest from retail investors in the United States.
XRP To Benefit The Most
The changing dynamics of the US regulatory landscape present a unique opportunity for XRP. With the announcement of SEC Chairman Gary Gensler’s resignation scheduled for January 2025, regulatory uncertainties are expected to diminish. This scenario has already sparked a remarkable 188% rally in XRP’s value since the US elections in November 2024.
XRP’s Real Use Cases
XRP’s real-world applications, particularly in cross-border remittance payments, underscore its value proposition. Ripple’s strategic partnerships with firms like SBI Remit and MoneyMatch exemplify the innovation driving instant global remittances. With an average payment finality of just four seconds and a scalability potential of 1,500 transactions per second, XRP is well-equipped to meet the growing demand for instant payments. Even a modest capture of the global cross-border payments market could significantly enhance XRP’s transaction volume and network activity.
“XRP Not Overvalued”
Despite its substantial gains post-election, XRP remains reasonably valued when assessed using the Market Value-to-Realized Value (MVRV) metric. This suggests that XRP still has considerable room for growth, offering significant upside potential for investors.
XRP: The Next Big Thing
Considering these factors, Bitwise asserts that XRP is poised to be a part of the next wave of spot ETF approvals in the US, with immense growth potential. Additionally, Ripple’s strategic investment in Bitwise’s XRP exchange-traded product (ETP) has generated significant interest within the crypto community. This financial backing by Ripple signifies a concerted effort to institutionalize XRP, marking a new chapter in its journey toward mainstream adoption.
