The cryptocurrency market is like a roller coaster, and the recent plunge has sent shockwaves through the industry. While most of the top altcoins have plummeted, XRP has bucked the trend and shown unexpected resilience. Its price drop has been significantly smaller, and market indicators suggest it is highly resistant to further declines.
outstanding performance
Crypto influencer Wise Advice has noticed a massive increase in the value of XRP. In the past two weeks, XRP’s price has surged 66% and is up 27% in the past month. The surge has given XRP supporters renewed hope, with rumors that an XRP ETF could be approved ahead of schedule. Despite ongoing legal issues with the SEC, recent developments and support from major players could change that.
XRP Ledger Activity
There has been an increase in activity on the XRP Ledger. The creation of new addresses and the number of active addresses have reached their highest levels since March. 1,721 new wallets were created in one day, while the number of active addresses peaked at 47,000 on another day.
Additionally, large investors or crypto whales have purchased over 140 million XRP worth $84 million, driving the overall growth.
SBI Holdings and Ripple: A Powerful Partnership
XRP’s main backer SBI Holdings is planning a joint venture with Franklin Templeton to potentially bring a Bitcoin ETF to Japan and a Ripple ETF to the U.S. SBI Holdings has long supported Ripple, starting with the formation of SBI Ripple Asia in 2016 and its partnership with the Bank of Japan. This suggests that SBI Holdings may strongly support the launch of an XRP ETF in the U.S.
Challenges ahead!
Despite the momentum, immediate approval of an XRP ETF faces challenges. At the Bitcoin 2024 conference, Robert Mitchnick, head of digital assets at BlackRock, expressed skepticism about the near-term approval of Solana and Ripple ETFs, citing their lack of maturity and liquidity.
The SEC’s ongoing lawsuit against Ripple, which began in 2020 over allegations of unregistered securities offering, remains a major hurdle. XRP attorney Fred Rispoli expects the case to wrap up by the end of this month, possibly July 31, 2024.
The future of XRP ETF
For an XRP ETF to be approved, there will need to be strong demand, regulatory support, and sufficient market liquidity. Currently, XRP’s trading volume is much lower than Ethereum, which could be a challenge. However, there is speculation that Donald Trump may include Solana and Ripple ETFs in his presidential campaign, which could speed up the approval of these ETFs if he wins.
In short, while XRP’s recent growth is impressive and has the potential to become an ETF in the future, there are still several challenges that need to be overcome, including regulatory approval and increasing market liquidity.
