If there’s one cryptocurrency that has benefited the most from Trump’s election win, then you probably need not look any further than Ripple (XRP). The cross-border payments-focused token was trading at around $0.50 heading into November’s election but has since gained over 330% – even after a 34% pullback from January’s highs.
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Much of the rally has been fueled by the belief that the new administration would take a softer stance on crypto. And that belief paid off: Gary Gensler, long seen as the industry’s chief antagonist, is out – replaced by crypto-friendly Paul Atkins.
While that signaled a positive move for the wider crypto industry it had especially positive implications for XRP. Ripple Labs had been embroiled in a years-long legal tussle with the SEC, which had alleged it sold XRP as an unregistered security. Indeed, by March, the case was dismissed.
So where does XRP go from here? According to top investor Dominic Basulto – ranked in the top 2% of TipRanks’ stock experts – the initial wave of pro-crypto optimism may already be baked in. But as he puts it, “new catalysts continue to emerge,” which could push XRP higher over the next year.
For one, now that the court case has been thrown out, the changing of the guard at the SEC could have long-term implications. It should allow Ripple to refocus on growing its core business of enabling financial transactions. Additionally, it could help the company attract more institutional partners to its blockchain-based payment system, which is primarily designed for cross-border money transfers. As long as Ripple faced legal uncertainty, financial institutions were hesitant to fully embrace its technology. Moreover, a crypto-friendly SEC significantly increases the likelihood that a spot XRP ETF will be approved by the end of 2025.
Then there’s the prospect of new stablecoin legislation, which is expected to be signed into law by the end of the summer. On the surface, this political development might not seem directly relevant to XRP, since it’s an altcoin, not a stablecoin. However, there is an indirect connection. Ripple recently launched a new dollar-pegged stablecoin called Ripple USD (RLUSD) to drive more activity on the XRP Ledger. Although Ripple USD only debuted in December, it has already reached a market cap of $300 million – an indication that institutional investors may be exploring new applications for XRP.
Basulto does concede, though, that there’s considerable ongoing debate within the crypto community about how beneficial this new stablecoin will be for XRP. On one hand, it could stimulate increased transaction volume, introduce new use cases, and boost demand for the XRP token. On the other hand, it might “cannibalize XRP transaction activity, and lead to lower demand for the XRP token.”
Overall, Basulto signs off on a positive note but thinks investors should keep a lid on any wild expectations.
“Although there’s a lot to be excited about, just remember: In its entire history, XRP has never once traded higher than $4,” said the 5-star investor. “So, while it’s nice to fantasize about XRP skyrocketing in value, the most likely outcome is for XRP to double in price, to regain an all-time high of $3.84 from seven years ago.” (To watch Basulto’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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