XRP is ready for explosive growth: The price can rise significantly

XRP shows moderate growth compared to the rest of the crypto market. While the digital currency shows small gains, other projects such as Bitcoin (BTC) and Dogecoin (DOGE) are currently performing much stronger. Despite these small achievements, there are important reasons why XRP it could still increase significantly in value.

Legal breach in the lawsuit by the SEC

In the long-running lawsuit between Ripple and the US Securities and Exchange Commission (SEC), XRP achieved a major legal breakthrough in July 2023. Judge Analisa Torres then ruled that programmatic sales of XRP are not covered by securities law, a decision the SEC accepted and decided not to challenge.

However, the SEC is challenging the part of the ruling in which the judge ruled that the sale of XRP to institutional investors could be considered a security. This aspect is related to the way in which Ripple sold XRP to larger investors, and the SEC fined it $125 million. This part of the case is currently under appeal.

If the lawsuit ends completely in favor of Ripple, it could have a positive effect on the company and on the price of XRP. Removing all legal uncertainty would strengthen confidence in the digital currency and pave the way for further growth.

Other factors that may cause the price of XRP to rise

In addition to legal clarity, there are other factors that positively affect the price of XRP. The main driver is Ripple’s payment solution, formerly known as On-Demand Liquidity (ODL) and now rebranded as Ripple Payments.

This solution uses XRP as a bridge currency for international payments, providing a fast and cost-effective way to send money across borders. More and more financial institutions are using Ripple Payments, which could lead to a greater demand for XRP and thus a possible increase in its price.

From RLUSD stablecoin

Ripple is preparing to launch its own stable, which could benefit from the adoption of the network and possibly also the demand for XRP.

This could attract financial institutions and other partners and encourage more transactions within the ecosystem. The growing activity within the Ripple ecosystem could indirectly increase the demand for XRP, which could have a positive effect on the price.

Impact of ETF Spot Bids on XRP Demand

Finally, new applications for Spot Exchange Traded Funds (ETFs) could have a significant impact on the demand for XRP. In early October, fund managers Bitwise and Canary Capitals filed applications with the SEC for an XRP Spot ETF, and Grayscale Investments has also filed to convert an existing XRP fund into a spot-based ETF.