If Bitcoin is the big winner of this cycle, XRP is among the few altcoins that have benefited from this growth of the crypto king. The victory against the SEC and its proximity to the banking sector have been key elements for this return of investors. But far from stopping there, Ripple continues to make XRP attractive, both through technological advances and stronger implantation in financial markets.
Just like Ethereum, the XRPL network is one of the aging layer 1s constantly challenged by younger projects. That’s why it is necessary to strengthen its technology to make it better aligned with user demands. Ripple has therefore announced upcoming major updates concerning the programmability of the XRPL network. Indeed, for now the XRPL network is mainly a payment network and its ecosystem has few applications compared to Ethereum or Solana. It is thus necessary to make developers’ work easier on the network.
Furthermore, a lending application has been announced, which will help boost the usage of the new RLUSD stablecoin. This centralized stablecoin implemented by a Ripple subsidiary complies with stablecoin regulations and is designed to facilitate cross-border payments and serve as an alternative to banking solutions. However, Ripple also aims to expand its use in decentralized finance. Even if for now this stablecoin is much less used than USDT and USDC, the ties between Ripple and the banking sector could help its development.
Finally, Ripple improves the interoperability of its network to break its isolation. The Wormhole interoperability solution will connect to the XRPL network and its future EVM sidechain. Thanks to this bridge, these networks will access the liquidity of the most important blockchains.
Since the 2017 bull run, XRP has been a reliable asset for traders. Its market capitalization is resilient over the long term, the project having endured a lengthy lawsuit against the SEC, and its volatility remains significant in the short term, two important ingredients for chartists.
With the recent acquisition of brokerage firm Hidden Road for $1.25 billion, Ripple is also becoming the first crypto company to own a multi-asset brokerage firm, which can only strengthen market interest.
The launch of standard and micro XRP futures contracts on May 19 has increased trading volume on this asset. Since that date, these contracts have seen $542.8 million exchange volume. As Ripple’s legal issues fade and rumors about possible use of the XRPL network by central banks intensify, further increases in transaction volumes can be expected.
This diversified engagement, from ETF issuers to retail traders, highlights strong demand for XRP futures contracts.
These demands for futures contracts show anticipation around the upcoming approval of XRP spot ETFs following last year’s spot ETFs for BTC and ETH. After the launch of these spot ETFs, a new rise in this asset can be expected. XRP recently retested the 0.618 Fibonacci level at $2, but an analysis of XRP price with Elliott Wave theory shows that a rise up to $5 is entirely possible during this cycle.
XRP is finishing its third cycle brilliantly and despite a long lawsuit initiated by the SEC, this cryptocurrency has managed to maintain strong ties with the banking sector. Now that the legal obstacles are cleared, Ripple is accelerating network development and its influence in the financial world to prepare for XRP’s next rise.
