In the evolving landscape of cryptocurrency, Ripple Labs has emerged as a significant player, now boasting a valuation exceeding $40 billion. Following its prolonged confrontation with the U.S. Securities and Exchange Commission (SEC), the regulatory atmosphere appears to be improving, particularly with recent political changes in the U.S. Since the 2024 presidential election, the price of XRP, Ripple’s flagship digital asset launched in 2012, has surged past the $2 mark, a peak not seen since the 2017 blockchain boom.
Despite its impressive growth, questions linger about the intrinsic utility of XRP. Hedy Wang, CEO of crypto liquidity provider Block Street, notes that while Ripple may gain further traction in the U.S., it has already established a foothold in various global markets. Historically, XRP has shown strength in countries like Japan and regions with high remittance activity, such as the Philippines and parts of Latin America.
Investment interest in XRP has surged, with its price rising from $0.50 to $2.15, marking a remarkable 330% increase since November 2024. Gregory Monaco, a certified public accountant, highlighted that XRP’s value is derived from its use in cross-border payments, contrasting it with Bitcoin’s status as “digital gold” and Ethereum’s reputation for smart contracts. Ripple’s extensive network of 300 financial partners across 45 countries and its role in facilitating $15 billion in annual cross-border transactions are cited as critical indicators of XRP’s practicality.
The term “cross-border payments” encapsulates significant challenges in traditional finance, including high costs and sluggish transaction speeds. Cryptocurrencies like XRP present a viable alternative, offering borderless, economical solutions. Nevertheless, Paul Holmes, a researcher at BrokerListings, argues that XRP’s valuation remains speculative, inherent in the broader cryptocurrency market’s dynamics, which often lack a direct correlation with income generation.
Investment trends further point to the perceived reliability of Ripple Labs, which recently secured $500 million in funding from Fortress Investment Group and Citadel Securities, underpinning its strong market position. However, regulatory uncertainty persists, exemplified by CoinShares’ recent decision to forgo the launch of a U.S. XRP exchange-traded fund (ETF), which could have expanded its appeal among traditional investors.
Despite these challenges, Ripple asserts that XRP is effectively utilized for transferring value across various currencies and financial assets, enhancing the need for swift settlement solutions in an expanding ecosystem. CoinGecko data reveals an extraordinary appreciation of over 36,000% for XRP since its initial listing on exchanges in 2013.
The dual role of XRP as both a speculative asset and a payment facilitator raises eyebrows, with on-chain activity indicating that approximately 50-55 million XRP transactions occur monthly, predominantly for payments. This juxtaposition illustrates the complexities of using a volatile currency for commercial transactions. Nonetheless, XRP’s programmability allows for precise transfers based on current valuations, making it particularly suited for high-volume institutional payments.
Despite the inherent risks, the XRP network continues to grow, with over five million wallets reported by early 2024. Following the 2024 elections and a favorable regulatory outlook, brokerage platform Robinhood played a role in further legitimizing XRP by relisting it in November 2024. The resolution of Ripple’s SEC issues, including a $50 million agreement reached in 2025, is expected to enhance confidence in XRP and its operational viability.
In conclusion, both its active user base and the established network of financial partnerships paint a promising picture for XRP. The fervent community of investors, often referred to as the “XRP Army,” remains optimistic about the asset’s future, buoyed by these developments and seemingly diminishing regulatory threats. The landscape appears more favorable than ever, even as questions about the asset’s speculative nature linger in the background.
