The crypto market has been on a rollercoaster, with a recent plunge sending shockwaves through the industry. While most top altcoins took a nosedive, XRP defied gravity, showing unexpected resilience. Its price drop was notably smaller, and market indicators suggest a strong resistance to further decline.
Does this mean XRP is making its comeback? Read on to know the truth.
Crypto influencer Wise Advice has noted a significant boost in XRP’s value. Over the past two weeks, XRP’s price has surged by 66%, with a 27% increase over the past month. This surge has renewed hope among XRP supporters, and there are rumors of a potential early approval for an XRP ETF. Despite ongoing legal issues with the SEC, recent developments and support from major players might change the situation.
XRP Ledger Activity
Wise Advice also highlighted a rise in activity on the XRP Ledger. The creation of new addresses and the number of active addresses have reached their highest levels since March. One day saw 1,721 new wallets created, while another day peaked at 47,000 active addresses.
Additionally, large investors, or crypto whales, have bought over 140 million XRP worth $84 million, boosting the overall growth.
SBI Holdings and Ripple: A Strong Partnership
SBI Holdings, a major supporter of XRP, is planning a joint venture with Franklin Templeton to potentially introduce Bitcoin ETFs to Japan and Ripple ETFs to the U.S. SBI Holdings has a long history of backing Ripple, starting in 2016 with the creation of SBI Ripple Asia and collaboration with Japanese banks. This suggests that SBI Holdings might strongly advocate for an XRP ETF in the U.S.
Challenges Ahead!
Despite the positive momentum, there are challenges to the immediate approval of an XRP ETF. At the Bitcoin Conference 2024, Robert Mitchnick, BlackRock’s Head of Digital Assets, expressed skepticism about the near-term approval of Solana and Ripple ETFs, citing their lack of maturity and liquidity.Â
The ongoing SEC lawsuit against Ripple, which began in 2020 over claims of unregistered securities offerings, remains a major obstacle. XRP lawyer Fred Rispoli expects the case to wrap up by the end of this month, possibly by July 31, 2024.
The Path Forward for XRP ETFs
For an XRP ETF to be approved, there needs to be strong demand, regulatory support, and enough market liquidity. Currently, XRP’s trading volume is much lower compared to Ethereum, which could be a challenge. However, there’s speculation that Donald Trump
Donald Trump
Donald John Trump, an American politician, media personality, and businessman, served as the 45th President of the United States from 2017 to 2021. Note: His Designation Is Former President
President
might include Solana and Ripple ETFs in his presidential campaign, potentially speeding up their approval if he wins.
In short, while XRP’s recent growth is impressive and there’s potential for an ETF in the future, several challenges need to be overcome, including regulatory approval and increased market liquidity.
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