Amid a challenging period for the XRP price, which has experienced a 24% decline over the past two weeks, Ripple Labs, the blockchain payment company, has launched an ambitious plan to raise at least $1 billion for a significant XRP purchase aimed at establishing a new digital asset treasury (DAT). According to sources cited by Bloomberg, the funds will be managed within this new treasury, and Ripple intends to use a special purpose acquisition company (SPAC) to facilitate the fundraising. In addition, the company will contribute some of its own XRP holdings to strengthen the initiative.
Investor sentiment toward DATs has become increasingly cautious, as reflected in the steep declines of shares for major crypto firms, including Michael Saylor’s Strategy and Japan’s Metaplanet. Despite this skepticism, Ripple Labs is moving forward with its fundraising efforts, which, if successful, would set a record for endeavors specifically focused on XRP. As it stands, XRP ranks as the fifth-largest cryptocurrency, with a market capitalization of $138 billion.
In a strategic move to bolster its financial infrastructure, Ripple also revealed the acquisition of treasury management software provider GTreasury for $1 billion. This acquisition is viewed as a means to enhance Ripple’s connections with corporate finance leaders and treasurers looking for access to tokenized deposits, stablecoins, and other digital assets.
As of July 31, Ripple held 4.74 billion XRP tokens in its wallets, valued at approximately $11 billion based on current market prices. Additionally, another 35.9 billion XRP coins are under escrow lockups and are scheduled for monthly releases.
Market expert Dark Defender has indicated that XRP could be entering a recovery phase, with predictions for a potential 340% rally in the coming months. The expert noted that a correction completed at the $2.22 level established in August suggests a “Journey Towards $10 Resumes.” Despite prevailing market anxiety, the analyst reassures investors that the altcoin is setting up for a rebound, with the $2.22 mark serving as a key threshold for short-term price actions.
Currently, XRP is trading at around $2.26, hovering near a critical support level as October draws to a close. If this support level falters, and if the $2.4 support fails to hold, XRP may retrace back to the $1.2 level, which it touched during the market crash on October 10.
