In 2024, cryptocurrency investors are enjoying a fantastic year. Since its conclusion in 2023, the Wins and Market Growth capitalization of all coins and tokens has more than doubled, reaching $3.5 trillion in the present day.
Most of the value increase is attributable to market leaders like Bitcoin (Crypto: BTC), but numerous tokens on the speculative end of the spectrum have also produced substantial gains. Regulators previously shrouded XRP (Crypto: XRP) in uncertainty, but they expect a 250% increase in 2024.
Will XRP Outperform Bitcoin in 2025
Stocks and cryptocurrencies, consideredWins and Market Growth are seeing more demand as interest rates continue to fall. Investors are optimistic because they expect the new Trump administration to be more crypto-friendly than its predecessors. That can potentially open up new avenues for value creation in the industry. XRP stands to gain significantly from that change in regulation; however, in 2025, will it outperform Bitcoin as an investment?
Banking on a global scale is complex. International money transfers can take many days. Since not all banks are members of the SWIFT payment network, a third party must mediate between them for every transaction.
Ripple and XRP Payments Redefined
A firm named Ripple attempted to resolve that issue. Financial institutions can communicate directly with one another and settle transactions immediately through its Ripple Payments (formerly RippleNet) network, which interacts with all current banking infrastructure.
To standardize these transactions further, Ripple also developed the XRP cryptocurrency coin. If a bank in the US wanted to save transaction fees and currency conversion charges, it could send XRP to a bank in Japan instead of dollars. The two financial institutions can then independently convert XRP to their preferred fiat currency.
The total supply of XRP coins is 100 billion. Of the total supply of 57 billion, 43 billion are held by Ripple, which releases up to 1 billion monthly to satisfy institutional demand. U.S. securities regulators sued Ripple in 2020 over their belief that Ripple’s XRP token should be considered a financial security, similar to stocks or bonds, imposing stringent regulations on the token’s issuance and the company’s operations.
Ripple’s Legal Win and XRP’s Future
Wins and Market Growth In August 2024, the litigation reached a partial resolution. Ripple faced a fine of $125 million. Even while XRP is utilized in transactions and exchanged on crypto exchanges, the judge ruled that it is only security in specific contexts, including when new tokens are sold to institutions.
Though it still requires Senate approval, President-Elect Trump has chosen pro-crypto billionaire Paul Atkins to head the SEC as part of his administration, and the SEC is appealing the decision. As a result, investors are optimistic that the incoming administration, set to take office on January 20, will resolve Ripple’s legal issues.
FAQs
How does Ripple's technology differ from traditional banking systems?
Ripple’s technology enables near-instantaneous transactions between banks, while traditional banking systems can take several days for international transfers. XRP helps eliminate currency conversion fees and transaction delays.
What role does Ripple play in the global financial system?
Ripple provides a payment network that allows financial institutions to settle transactions directly with one another, bypassing traditional systems like SWIFT. Its cryptocurrency, XRP, helps facilitate these transactions efficiently.
Can XRP outperform Bitcoin in 2025?
While Bitcoin remains the market leader, XRP is poised to gain significantly due to potential regulatory changes and its growing use in cross-border payments. However, whether XRP will outperform Bitcoin in 2025 remains uncertain.
How has XRP's market performance been in 2024?
XRP has experienced significant gains in 2024, with predictions of a 250% increase in value. This growth is partly attributed to a more favourable regulatory environment and increasing cryptocurrency demand.
