Although many members of the crypto community disregarded XRP as a dying project in recent years, XRP made a ferocious comeback in November 2024, with the coin increasing by more than 500% in less than 30 days.
The timing of XRP’s rally was not a coincidence – the XRP price started to increase shortly after Donald Trump won the U.S. presidential election. The reason why the market received this as very good news for XRP is that Trump is expected to staff the securities regulator SEC with crypto-friendly officials.
Under Biden’s administration, the SEC sued Ripple, alleging that the company was selling XRP as an unregistered security. This legal battle is technically still ongoing, but the likelihood of a favorable outcome for Ripple has increased substantially following Trump’s victory in the election.
In this article, we are going to dive deeper into potential price catalysts for XRP, explain its main risks and opportunities as an investment, and examine XRP price predictions for 2024 and 2025.
Here’s why XRP could be a good investment
After rising to a peak of $1.88 in April of 2021, XRP went on a multi-year streak of underperformance, failing to reach the $1 price level between December 2021 and November 2024. However, XRP’s fortunes seem to be turning, as the coin reached as high as $2.84 in early December 2024.
Let’s quickly outline the main reasons why XRP could be a good investment:
- Ripple is likely to see a favorable outcome in the lawsuit against the SEC
- Ripple’s RLUSD stablecoin will launch on the XRP Ledger soon
- Increased blockchain activity on the XRP Ledger
- The XRP Ledger is being positioned as a hub for RWAs (real-world assets)
- Ripple could become the dominant remittance solution
In the following sections, we’ll explore the reasons why XRP is a good investment in more detail. We’ll also present a case against XRP so that you can get familiar with some of its investment drawbacks as well.
Ripple is likely to see a favorable outcome in the lawsuit against the SEC
Many XRP investors argued that XRP’s disappointing price action was the result of the SEC’s lawsuit against Ripple, which introduced plenty of regulatory uncertainty surrounding XRP (the coin was even temporarily delisted from multiple major crypto exchanges following the lawsuit).
However, the tables turned following the U.S. elections in November 2024. Donald Trump, which positioned himself as a pro-crypto candidate, promised to fire Gary Gensler, the chairman of U.S. securities regulator SEC (Securities and Exchange Commission). Following Trump’s victory, Gensler announced that he would resign from his position on January 20, 2025.
With Trump poised to staff the SEC with crypto-friendly officials, the legal battle between Ripple and the regulator is expected to conclude with a favorable result for Ripple (and subsequently XRP).
Trump picks crypto enthusiast Paul Atkins for SEC chair https://t.co/uVwdk4jO75
— Financial Times (@FT) December 4, 2024
The markets for XRP quickly reacted to Trump’s victory, and the coin displayed a truly impressive bullish rally which brought its price all the way up to $2.84. For context, we should note that XRP was trading at $0.50 on November 4, one day before the presidential election in the U.S.
Ripple’s RLUSD stablecoin will launch on the XRP Ledger soon
A notable development for XRP is Ripple’s upcoming launch of a dollar-pegged stablecoin, Ripple USD (RLUSD). Ripple’s stablecoin will operate on both the XRP Ledger and Ethereum, offering 1:1 redemption with US dollars.
The stablecoin’s peg to the US dollar will be maintained through full backing by US dollar deposits, short-term US government treasury securities, and other cash-equivalent assets.
An independent auditing firm will verify the reserves supporting RLUSD, with Ripple providing monthly attestations to ensure all circulating RLUSD tokens are fully backed.
In August 2024, Ripple revealed that RLUSD had entered a private beta testing phase on the XRP Ledger and Ethereum mainnet. However, the official release date for RLUSD remains unconfirmed.
In December 2024, Ripple announced that they were working with the NYDFS (New York Department of Financial Services) to secure a final approval for RLUSD before the stablecoin’s launch.
Despite some speculation, $RLUSD isn’t launching today. We’re in lockstep with the NYDFS on final approval and will share updates as soon as possible.
We are fully committed to launching under the supervision of NYDFS and upholding the highest regulatory standards. Stay tuned…
— Ripple (@Ripple) December 4, 2024
Increased blockchain activity on the XRP Ledger
Over the past month, blockchain activity on the XRP Ledger saw a substantial increase. For example, the number of daily active accounts on the XRP Ledger has seen a strong uptrend and even briefly surged above 100,000 in early December 2025.
The number of daily active accounts on the XRP Ledger saw a substantial increase in late 2024. Image source: XRP Scan
Additionally, the number of payments from one account to another and the number of transactions executed also saw a significant rise. Still, it’s worth keeping in mind that these spikes in activity are almost certainly a result of XRP’s increase in price, so it will be worth monitoring these analytics to see if the figures can stabilize above their previous levels.
The XRP Ledger is being positioned as a hub for RWAs (real-world assets)
A growing trend on the XRP Ledger is the tokenization of real-world assets (RWAs). This involves creating unchangeable digital representations of assets like real estate, commodities, and securities, enabling them to be traded and owned on blockchain networks.
The XRP Ledger is particularly well suited for this role, offering built-in tokenization functionality, a native decentralized exchange, and tools that help businesses meet regulatory requirements. Looking forward, we can expect the XRP Ledger to introduce new features designed to further strengthen its support for RWA tokenization.
For example, the RWA platform OpenEden has launched a tokenized U.S. treasury bill product on the XRP Ledger. Shortly afterward, Ripple committed $10 million to OpenEden’s TBILL tokenized treasury offering.
Moreover, Ripple is working closely with Archax, a regulated digital asset exchange, to bring tokenized assets worth hundreds of millions of dollars onto the XRP Ledger. Archax has collaborated with Ripple to tokenize a portion of abrdn’s US dollar Liquidity Fund (Lux) on the XRP Ledger.
Archax, in collaboration with @Ripple, has launched the first tokenised money market fund on #XRPL.
This groundbreaking initiative brings tokenised access to @abrdn_plc $3.8 billion US dollar Liquidity Fund, paving the way for enhanced operational efficiencies and institutional… pic.twitter.com/9TpXhqBOtz
— Archax (@ArchaxEx) November 25, 2024
Ripple could become the dominant remittance solution
XRP is one of the fastest and cheapest cryptocurrencies to transfer. It relies on the unique XRP Ledger Consensus Protocol that allows it to process transactions quickly while charging extremely low fees.
Thanks to the high efficiency and Ripple’s partnership with several financial institutions, including Bank of America, Santander, and the Canadian Imperial Bank, many believe that XRP as the native asset of XRP Ledger could become the dominant cross-border payments solution in the future.
According to the World Bank, remittances grew an estimated 5% to $626 billion in 2022, largely driven by users from low- and middle- income countries. If Ripple manages to capture a significant share of the remittance market, it could represent a significant growth opportunity.
What are the cons of XRP as an investment?
Now that we’ve gone over some of the main reasons why XRP could be a good investment, it’s time to examine some of the cons as well. Here are some of the main reasons against investing in XRP:
- XRP could be overbought at the moment
- Ripple controls a very large portion of the XRP supply
XRP could be overbought at the moment
XRP saw a huge price increase in November 2024, with the price increasing from $0.50 on November 4 to a $2.84 peak on December 2 (+468%). Although the coin has seen a moderate price correction since that peak, it’s still quite possible that XRP is significantly overbought and could explore lower prices in the future to establish new support levels.
Ripple controls a very large portion of the XRP supply
Although Ripple has vehemently denied that XRP is a security (and will likely get their way in court under Donald Trump’s more lenient SEC), it’s undeniable that the company’s activities have a huge influence on XRP.
On top of being the primary force trying to drive the adoption of the XRP Ledger, Ripple also controls a massive stash of XRP tokens that it periodically sells to help fund its operations.
As of September 30, 2024, Ripple held 4.68 billion XRP, and 38.9 billion XRP belonging to Ripple was locked in escrow accounts on the XRP Ledger. While Ripple cannot immediately access all the coins it holds in escrow accounts, a portion of the coins held in escrow is released to Ripple on a monthly basis.
Since Ripple controls over 40% of the XRP supply, they can be a significant source of selling pressure in the XRP market.
XRP price prediction for 2024, 2025: A strong finish to this year is in the cards
According to our XRP price prediction algorithm, XRP is forecasted to hit new all-time highs in 2025. At the moment, the price prediction is forecasting that XRP will top out at just over $4 in April 2025, before retreating and establishing support around the $2 price level.
This prediction algorithm is suggesting that XRP is a good investment right now. However, it’s very important to understand that the cryptocurrency markets are not exactly known for their predictability, and the price predictions on CoinCodex are entirely based on price history and technical indicators. No fundamentals or news events are taken into consideration when these predictions are generated.
So, is XRP a good buy for 2025?
All in all, there are several reasons that suggest that XRP is a good investment for 2025. The upcoming crypto-friendly Trump administration, the XRP Ledger’s use for RWA tokenization, increased activity on the XRP Ledger and the RLUSD stablecoin are all positive signals for the popular cryptocurrency. However, it’s also worth keeping in mind that XRP might be overbought at the moment, and you should also be aware that Ripple controls more than 40% of the XRP supply.
If you want to explore the investment potential of other blue-chip cryptos, we suggest that you check our articles on Bitcoin, Ethereum, Cardano, and Solana to examine their individual advantages and disadvantages as an investment.
