XRP left the rest of the market in the dust.
No upper cryptocurrency did better than Xrp (XRP 1.29%)) in 2025. It increased by 59% for August 12, more than Bitcoin,, EthereumAnd all the other big names. He also added more than $ 50 billion to his market capitalization during this period.
It is not always easy to understand why some cryptocurrencies take fire like that. As meme coins have demonstrated, there may be an element of random character. But in the case of XRP, there are some legitimate reasons for which he was so successful this year.
Image source: Getty Images.
1. A friendly regulatory landscape of crypto
Bull Run of XRP started with the presidential election of 2024, when it went from a price of $ 0.50 to more than $ 2.50 in about a month. Donald Trump’s election as president was considered good for the cryptography industry, when he campaigned on the promises of making the United States the capital of the planet’s cryptography and to fire the president of the time, Gary Gensler, who had led a repression against cryptocurrencies.
Although the election was a rear wind for the whole cryptography industry, it was good news for XRP. Ripple, the parent company of XRP, had fought against the Securities and Exchange Commission (SEC) in court since the end of 2020 for allegations according to which XRP sales were an offer of non -registered securities. After taking office, Trump immediately appointed Paul Atkins, known for supporting cryptocurrencies, to lead the dry, and Atkins sworn on April 21.
The wait was that the new management of the dry would finally result in a resolution of its trial with Ripple. Although this did not happen overnight, Ripple and dry both agreed to drop their respective calls on August 7.
2. Its role in cross -border payments
One of the reasons why XRP has made its way with investors is that it has a legitimate utility of the real world within the framework of the Ripple payment network. Ripple uses Blockchain technology to provide faster and cheaper cross -border payments. It can pay transactions in just 3 to 5 seconds for less than $ 0.01 in costs.
XRP enters the image when a transaction implies several fiduciary currencies. Ripple offers a service called liquidity on demand (ODL) which uses XRP as an intermediary for these cross -border transactions. The sender converts payment into XRP tokens and sends them to the Ripple network. The recipient then converts these XRP tokens to its local currency. Using XRP, none of the parties need to have foreign currencies.
It should be noted that the simple fact of a financial institution uses Ripple does not necessarily mean that it also uses XRP. Certain financial institutions, including American Express And Banco SantanderUse the Ripple payment network without its ODL service and do not need XRP. But there are also confirmed banks to use XRP, including SBI Remote And Tranglo.
3. Increased interest in institutional investors
Most cryptocurrencies have not yet made its way with institutional investors. Only Bitcoin and Ethereum have shaken this trend, because these are the most established and easiest parts to buy, especially now that they are available via negotiated funds in exchange for crypto (ETF).
But institutional investors bought $ 1.1 billion from XRP this year, according to data published on August 12 by Coinshares. This puts it in third row and is a sign that XRP could be the next one to see a generalized institutional adoption.
Another reason for optimism concerning institutional investment is the status of ETF SPOT XRP. Several asset managers are looking for approval of the ETF XRP of the SEC, which plans to make a decision in October. The expectation that XRP will be the next cryptocurrency to obtain FNB approval has probably encouraged investors to buy before that.
Will XRP continue to dominate the cryptography market?
XRP will probably not maintain this level of outperformance in the future. In fact, if you only look at the last three months, Ethereum has given better results.
Regarding the question of whether XRP is an interesting investment, it has an intriguing use case on the Ripple payment network. There is certainly a demand for faster and cheaper cross -border payments, although banks can only get it from Ripple and do not need XRP.
I think XRP could be a long -term winner as an investment in cryptography, but he is volatile and could be a decline after a success. If you are going to invest, I would recommend an average dollar cost approach (DCA), by dividing your investments instead of going there at the same time. And given the risk, cryptocurrency should probably be only a small part of your wallet.
American Express is an advertising partner of Motley Fool Money. Jpmorgan Chase is an advertising partner of Motley Fool Money. Lyle Daly has positions in Bitcoin and Ethereum. The Motley Fool has positions and recommends Bitcoin, Ethereum, Jpmorgan Chase and XRP. The Motley Fool has a policy of disclosure.
