4 Reasons Why XRP Will Go Parabolic in 2025

Price XRP (CRYPTO: XRP) It is up more than 122% since election night (as of November 19) and has far outperformed its peers Bitcoin (CRYPTO: BTC)world’s largest cryptocurrency. The industry has also been on the rise, with President-elect Donald Trump positioning himself as a friend of the crypto industry and promising to make changes that support the industry and bring cryptocurrency back to the United States.

While I think the industry can continue to perform well with a friendlier regulatory environment and lower interest rates, XRP is poised to outperform. Here are four reasons why XRP could go parabolic in 2025:

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1. Welcome to Robinhood

Popular online brokerage robinhood It recently began selling XRP on its platform to more than 24 million funded customers who hold $152 billion in assets in the company. Robinhood has slowly added new tokens to its platform in recent years due to fears of regulatory backlash from the U.S. Securities and Exchange Commission (SEC) potentially selling unregistered securities.

But with Trump expected to shake up the SEC, regulatory concerns should ease when it comes to further token sales. A Robinhood listing will increase retail investors’ interest in XRP because Robinhood is known for its ease of use.

2. Potential spot XRP ETFs

The launch of Bitcoin and Ethereum Spot exchange-traded funds have led to huge increases in perspective prices. Spot ETFs are another way to increase the liquidity and exposure of cryptocurrencies. Cryptocurrencies can be more difficult for the average investor because purchasing often requires digital wallets and remembering long passwords to access. ETFs can be bought and traded like stocks and are more likely to be offered at various stock brokerages and therefore retirement accounts.

Companies like Bitwise are already preparing to launch spot XRP ETFs, although they have not yet been approved. Ripple Labs CEO Brad Garlinghouse recently said that a spot XRP ETF is “inevitable.”

3. End of SEC case

Garlinghouse and Chris Larsen, the creators of XRP, Ripple and XRP, became the poster children of an era. SEC case ultimately seeks greater regulatory jurisdiction over cryptocurrencies. The SEC believes it should have greater regulatory oversight over cryptocurrencies because many are traded as speculative investments and should therefore be treated as securities. The idea includes imposing additional requirements on crypto networks, such as registration and reporting obligations with the SEC.

Crypto advocates believe the SEC has overreached and cryptocurrencies should be regulated as currencies regulated by the Commodity Futures Trading Commission.

Ripple, its founders and XRP are caught in the middle of this debate. In 2020, the SEC filed a lawsuit against the parties for allegedly selling XRP as an unregistered security in 2013. A judge ruled in favor of the defendants, but the SEC subsequently appealed parts of the case. The case is due to conclude in 2025, and while I’m not a lawyer, a positive outcome seems likely.

The case has put a strain on the price of XRP, so a definitive end to the case should be a positive.

4. XRP underperformed its peers

Even after the recent big rally, XRP has underperformed its peers, from larger cryptocurrencies like Bitcoin and Ethereum to similar meme tokens. dogecoin. Part of this is probably due to the lawsuit. However, XRP is one of the first tokens and has an interesting use case with its ability to provide companies with faster cross-border payment capabilities.

XRP also has a fixed supply, which not all cryptocurrencies have. This could become a potential inflation hedge that could be useful if Trump’s policies turn out to be inflationary, as some economists expect. Due to underperformance, XRP may have more room to move, especially if conditions remain favorable for the sector.

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Bram Berkowitz It has positions in Bitcoin, Ethereum and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a feature disclosure policy.

4 Reasons Why XRP Will Go Parabolic in 2025 originally published by The Motley Fool