5 Catalysts Driving the XRP Price Rises

Bittime - In the last few months, the price of XRP has recorded a sharp increase, even approaching the highest figure ever achieved before. 

What are the main factors that triggered this increase in XRP prices? Here are some of the catalysts that drove the surge in XRP prices.

1. Causes of XRP Price Rises: Trump's Victory 

The election of Donald Trump in the US presidential election on November 5 brought positive sentiment. Trump is known for his pro-crypto stance so his leadership is believed to support the crypto industry.

According to Ripple CEO Brad Garlinghouse, Trump's victory will make crypto successful again. This can be seen from the growth of crypto market capitalization which jumped to 42% after the election. 

This positive sentiment was also one of the catalysts that pushed the price of XRP to increase, even fivefold since November.

Read Also: What is XRP Coin: Definition, History, and Differences from Ripple

2. Causes of XRP Price Rise: Robinhood Relisting XRP 

Causes of XRP price also occurred after Robinhood re-listed XRP. Previously, Robinhood delisted XRP in 2020 due to regulatory issues involving Ripple and the US SEC.

This XRP relisting triggered high trading activity which shows great interest from institutional investors. In South Korea, XRP even surpassed Bitcoin in trading volume on some platforms.

3. Causes of XRP Price Rises: SEC Chairman Resigns

News about the resignation of SEC Chairman Gary Gensler was also a catalyst that pushed XRP prices up. During his tenure, Gensler was known for his tough stance against the crypto industry, including Ripple.

Gemsler's resignation is considered an opportunity for Ripple to resolve its legal conflict with the SEC, which has been limiting XRP's growth. 

Read Also: Ripple CEO: A Short Profile of Brad Garlinghouse and the Ripple Team

4. Causes of XRP Prices Rise: Decreasing Bitcoin Dominance

As crypto market capitalization increases, Bitcoin dominance begins to decline, from 60% to 53%. This decline in Bitcoin dominance is often a sign of the start of altcoin season.

According to 10x Research, altcoin season will provide an opportunity for tokens like XRP to gain more attention and investment, thereby driving prices up.

5. Causes of XRP Prices Rise: Potential of XRP ETF 

The successful launch of Bitcoin and Ethereum ETFs this year fueled speculation that XRP will soon too launch ETF XRP.  

Ripple has even collaborated with companies such as Bitwise Asset Management and WisdomTree to submit an XRP ETF to the SEC.

If approved, the price of XRP could surge higher as it would attract huge interest from institutional investors. 

Those are the 5 catalysts that drive the increase XRP price, starting from positive sentiment towards Ripple, ecosystem developments, to the potential for more supportive regulations. 

Read Also: Advantages of XRP and List of Banks That Use XRP for Transactions

FAQ XRP

What is XRP and what is its use?

XRP is a digital asset created by Ripple Labs, and designed to facilitate cross-border payments. XRP blockchain technology enables transactions in just a few seconds with very low fees making it ideal for international money transfers and micropayments.

What is the Difference Between XRP and Other Cryptocurrencies Like Bitcoin?

XRP is designed to support a cross-border payment system with a focus on speed and cost efficiency, different from Bitcoin which functions more as a store of value and investment tool. In addition, XRP uses a consensus mechanism that does not require mining so it is more energy efficient.

How to Buy XRP?

XRP can be purchased via various exchange platforms such as Bittime, just by visiting the trade page on the official Bittime website. 

How to Buy Crypto with Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with CoFTRA, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Cek rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

Osato Avan-Nomayo, What’s going on with XRP? Five reasons why the Ripple-issued crypto is surging, accessible on December 7, 2024.

Jahnu Jagtap, 5 Reasons Why XRP Could Explode and Hit $10 Soon, accessed December 7, 2024.

Author: IPR