XRP Surges to Its Highest Level Since 2018: What’s Driving the Rally?

XRP, the cryptocurrency token issued by Ripple Labs, has experienced a significant price surge in recent months, reaching its highest level since early 2018. Several key factors driving this rally include regulatory changes in the United States, accumulation by large investors (whales), the launch of new products by Ripple Labs, and speculation regarding the potential launch of an XRP ETF, as reported by Bittime and Coinvestasi.

1. Regulatory Changes in the United States
   Positive sentiment toward XRP has increased following Donald Trump’s victory in the U.S. presidential election on November 5, 2024. Trump, known for his pro-crypto stance, has raised hopes for more favorable regulations for digital assets. Previously, Ripple Labs faced pressure from the U.S. Securities and Exchange Commission (SEC) under the leadership of Gary Gensler. However, with Trump’s inauguration on January 20, 2025, and Gensler’s resignation from the SEC on the same day, the market sees a significant opportunity for the crypto industry’s growth, according to reports from Bittime, Coinvestasi, and Barron’s.
    

2. Accumulation by Large Investors (Whales)
   According to a report from Coinvestasi, XRP’s price increase has also been driven by accumulation activity from whales—individuals or entities holding large amounts of cryptocurrency. Over the past month, whales have shown a strong interest in XRP, with their total holdings reaching the highest level in six years. Data from Santiment reveals that XRP holders with between 1 million and 10 million XRP have purchased more than 679 million coins in just three weeks.
    

3. Launch of RLUSD Stablecoin by Ripple Labs
   The XRP community is currently anticipating the launch of Ripple Labs' stablecoin, RLUSD. This stablecoin is designed to maintain a 1:1 peg to the U.S. dollar and aims to complement XRP by providing a more stable payment solution. This initiative is expected to strengthen the bridge between traditional finance (TradFi) and decentralized finance (DeFi). According to a report from Fox Business, the New York Department of Financial Services (NYDFS) has given a positive indication toward approving RLUSD, with Ripple targeting its launch on December 4, 2024, as cited by Coinvestasi.
    

Potential Launch of an XRP ETF

The successful launch of Bitcoin and Ethereum ETFs in 2025 has sparked speculation about the possibility of an XRP ETF. Ripple has reportedly partnered with companies such as Bitwise Asset Management and WisdomTree to submit an XRP ETF application to the SEC. If approved, the launch of an XRP ETF is expected to drive further price increases by attracting more institutional investors.

Considering these factors, XRP shows strong potential for further growth in the near future. However, investors are advised to conduct thorough research and consider the inherent volatility risks of the crypto market before making investment decisions.