Ripple (XRP-USD) has been one of the biggest beneficiaries of the shifting political and regulatory landscape following Trump’s November election victory. The outcome was widely seen as a win for the broader cryptocurrency market, fueled by expectations that the new administration would adopt a more favorable stance toward digital assets.
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So far, those expectations have largely been met. The administration includes several prominent crypto advocates, and Trump’s executive order to establish a Strategic Bitcoin Reserve further signaled that crypto has entered the policy mainstream.
A major development came with leadership changes at the U.S. Securities and Exchange Commission (SEC). Crypto critic Gary Gensler stepped down, replaced by Paul Atkins – a known proponent of digital assets – bringing promises of lighter-touch regulation and clearer guidance.
That shift proved especially pivotal for Ripple Labs. The company had been locked in a years-long legal battle with the SEC over allegations that XRP was sold as an unregistered security. With the new leadership in place, many hoped the case would be dropped, and earlier this year, that’s exactly what happened.
So, with that catalyst in tow, it’s no wonder XRP went on a huge run in the wake of Trump’s election win, and is now still trading 342% above pre-election levels, even after a 32% pullback from January’s high.
Investor Bram Berkowitz notes that removing this “big overhang” enables Ripple to concentrate on its core mission: streamlining cross-border payments. XRP is well-suited for this role, offering faster and cheaper transactions than traditional systems. Ripple has also launched a stablecoin, RLUSD, to strengthen XRP’s utility as a bridge between currencies. On top of that, its recent $1.25 billion acquisition of prime broker Hidden Road signals a push toward greater institutional adoption. And with several firms now seeking approval for XRP spot ETFs, additional demand may soon follow.
But the question is whether all that merits an investment in XRP. According to Berkowitz, that’s a tougher call than it seems. Cryptocurrencies are notoriously hard to value – there’s no cash flow to analyze, and prices are often driven more by hype and headlines than fundamentals. But XRP isn’t just another speculative token. It boasts a real-world use case, capable of handling 1,500 transactions per second, which positions it as a strong contender for powering fast, cost-effective cross-border payments.
On the other hand, there are also competitors who can process transactions at a fast pace. That said, XRP benefits from being part of Ripple’s expanding ecosystem, which now includes a stablecoin, a major prime broker, and established banking partners – potentially positioning it as the go-to token for institutional payments.
“For this reason,” Berkowitz sums up, “I think XRP is worth a small, speculative investment, but I wouldn’t invest too heavily in the token just yet because it’s still too volatile.” (To watch Berkowitz’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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