According to Ripple’s recent report, XRP spiked a whopping 280% in Q4 2024. This rally was driven by big events, such as Trump’s election victory, a new regime of Federal Reserve policy, and a flood of investors entering crypto.
XRP was trading at $0.71 at the beginning of Q4 and had climbed to $2.70 by December 30, a whopping 500% rise from its November low. Trading volumes filled over, with averages of $5 billion a day, a marked increase from the previous month when they were less than $500 million a day. XRP transactions peaked on December 2, when over $25 billion worth of the currency changed hands.
Former SEC Chair Gary Gensler’s resignation then had speculators dreaming that the SEC was changing its tune on Ripple, hoping that the two-year-long lawsuit would finally come to an end.
As Trump is a huge supporter of crypto, his presidential election win helped the market go up. Along with that, the big financial players WisdomTree, Coinshares, Bitwise, and Canary Capital all filed for XRP exchange-traded funds (ETFs), underlining the fact that institutional interest in XRP is heating up.
But unlike prior speculative frenzies, a substantial amount of the XRP buying activity came from long-term investors instead of short-term traders looking for quick profits. Best known amongst the aforementioned trading platforms, Binance has contributed to the largest share of XRP trade volume; accounting for 36% of total trades, followed by Upbit Korea at 20%, and Coinbase at 9%.
The SEC reversed a rule that made it expensive for banks to safeguard cryptocurrencies, opening the doors for financial institutions to diversify into crypto assets like XRP.
XRP has been in a strong position even though it dipped slightly from the December highs. As institutional interest continues to grow, regulatory clarity improves, and the broader crypto market regains its momentum, XRP could be poised for even larger gains in 2025.
Also Read: XRP Records $434 Billion in Transactions Daily. Here’s How.
