Ripple XRP finds traction amid shifting market mood.
Despite the continuing legal struggle with the United States Securities and Exchange Commission (SEC), Ripple’s XRP coin is seeing a significant increase in market demand and investor confidence.
According to a recent poll conducted by entrepreneur Patrick Bet-David, 43.8% of respondents feel Ripple has the most promising long-term technology, with Bitcoin receiving only 35% of the vote, CoinPedia reports.
This shift in attitude has spurred lively discussion on social media, with some Bitcoin supporters perplexed by XRP’s gaining popularity. Many attribute this momentum to Ripple’s established market position and expanding role in digital banking.
Analysts’ thoughts on XRP’s future potential
Eric Yakes, managing partner of EpochVC and author of the book The 7th Property, also commented on the subject. He highlighted that Ripple’s journey since 2012 has rekindled attention, but he remains sceptical of XRP’s long-term potential. Yakes stated that while the best-case scenario for XRP is to serve as infrastructure for central bank digital currencies (CBDCs), the token itself is unlikely to profit directly from such adoption.
Nonetheless, Ripple’s infrastructure, which includes the RippleNet network, continues to expand, processing $7 billion in payments each year. This accomplishment, made despite regulatory obstacles, has increased investor trust in XRP.
Comparison to Ethereum and internal difficulties
According to CoinGecko, XRP’s fully diluted valuation (FDV) has hit $238 billion, edging out Ethereum’s $232 billion. However, in terms of market capitalisation, Ethereum continues to lead with $232 billion, while XRP has $138.7 billion. Ethereum is also experiencing internal concerns, such as management challenges within the Ethereum Foundation and delays in the Pectra update. Technical difficulties on testnets such as Sepolia and Holesky have pushed the mainnet launch from March to April.
Regulatory signals, political issues, and XRP’s growth prospects
XRP’s surge is also fuelled by increasing regulatory certainty in the United States and growing institutional interest. Since Donald Trump’s reelection, the price of XRP has risen more than 300%, reaching $3.38 in January. The former president’s recent reference of XRP as part of a potential US digital asset reserve has increased investor confidence.
Furthermore, big asset managers are actively applying for spot exchange-traded funds (ETFs) based on Ripple’s cryptocurrency. As previously reported, BlackRock plans to file for an XRP ETF.
In a fast changing market, XRP’s growth demonstrates a significant shift in mood and rising demand for other digital assets other than Bitcoin and Ethereum.