XRP has long been a key player in the crypto space. Created in 2012 by Ripple, it serves as the native asset of the XRP Ledger. Its primary function? To enable fast and cost-effective cross-border payments for financial institutions.
Despite its success, XRP has yet to reach its full potential. That could change in 2025. With a possible spot ETF approval and a resolution to its ongoing SEC lawsuit, XRP could experience a major price surge. Here’s why.
The XRP ETF Catalyst
Spot Bitcoin ETFs changed the game in early 2024. They allowed traditional investors to gain exposure to Bitcoin without dealing with crypto exchanges. The result? A record-breaking $37 billion in net inflows within a year. Bitcoin’s price more than doubled since then.
Now, XRP may be next. At least four asset managers, including 21Shares, Bitwise, Canary Capital, and WisdomTree, have applied for spot XRP ETFs. If approved, these ETFs could provide a massive boost to XRP’s market value. Increased demand from institutional investors could push the price much higher.
The SEC Lawsuit: A Final Chapter?
Ripple has been battling the SEC since December 2020. The agency accused Ripple of selling unregistered securities through XRP transactions. A split ruling in July 2023 gave both sides partial victories. Ripple was fined $125 million in August 2024, a much smaller penalty than the SEC initially sought.
Now, the case is on appeal. The SEC wants stricter regulations, but Ripple remains confident. Some industry experts believe the SEC may drop the case altogether. A positive outcome could send XRP soaring, much like it did in 2023 when the token jumped over 70% after a favorable court decision.
A Market Ready for XRP’s Rise
XRP is already the third-largest cryptocurrency, with a $240 billion market cap. Yet, its potential remains largely untapped. The European Central Bank projects that cross-border transactions will reach $290 trillion by 2030. Ripple’s network, with over 100 financial institutions and 80 markets, is well-positioned to capture a significant portion of this volume.
With an ETF approval and a legal resolution, XRP’s long-awaited “Bitcoin moment” may finally arrive in 2025. If history repeats itself, investors could see XRP surge past previous highs, making it one of the biggest winners in the crypto market this year.
