San Francisco-based enterprise blockchain company Ripple hasreleased its latest quarterly report, in which it highlighted XRP's massive price rally that took place recently.
Notably, Ripple believes that the recent buyers of the token "were buying to hold."
This assumption is based on the fact that the rally was mainly driven by spot volume instead of "short-term speculative bets." This indicates that it might be not just a flash in the pan since the buyers likely have confidence in the token's "long-term potential."
The spot-driven rally was dominated by Binance, South Korea-based Upbit, and Coinbase.
The token's average daily volume reached an impressive $3.4 billion on top-tier exchanges.
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Asreported by U.Today, the XRP token reached a new record all-time peak on major spot exchanges earlier this month.
The token is benefiting from anticipations of the new SEC administration adopting crypto-friendly policies. Ripple is predicting that the industry might experience "unprecedented growth" due to the recent change in SEC leadership.
Ripple, of course, has been engaged in a yearslong legal battle with the agency. In its recent report, the company said that the XRP had rebounded after years of "market manipulation" perpetrated by the SEC.
Growing institutional demand has also likely contributed to the current XRP rally. Ripple has noted that various issuers filed for exchange-traded funds based on the cryptocurrency during the fourth quarter.
The Q4 report shows that Ripple currently has 4.8 billion XRP tokens available in its wallets. On top of that, roughly 38 billion tokens are locked up in escrow wallets.
