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This Previously Forgotten-About Crypto Has Been Surging, and Won't Stop in 2025

Chris MacDonald

Published: December 19, 2024 3:09 pm

XRP (CRYPTO:XRP) is one of the top cryptocurrencies in the market many investors continue to watch closely right now. That’s for good reason, as the world’s third-largest token by market capitalization sees a resurgence to become one of the best-performing large-cap digital assets this year, up more than 325% at the time of writing.

This move has pushed what many may have considered to be a relatively overlooked or forgotten about crypto (at least relative to other more community-oriented projects in recent years) toward the top of the list for long-term investors looking for large-cap digital assets to invest in. And with the recent election of pro-crypto president Donald Trump to the White House, there are plenty of investors out there who view this top project as a key beneficiary of an improved regulatory environment.

Let’s dive into what makes this top cryptocurrency one investors are increasingly looking at right now, and why this momentum could very well spill over into 2025.

Key Points About This Article:

• XRP remains among the leading cryptocurrencies investors are paying closer attention to digital assets with serious momentum right now.
• Here are some of the project’s key catalysts heading into 2025, and where this crypto could be headed over time.
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The Resurgence of XRP: A Year of Record Gains

XRP’s resurgence in 2024 has been nothing short of remarkable. This token has surged from approximately $0.50 at the start of the year to a recent peak above $2.70 per token earlier this month, before giving up some of these gains. However, it’s worth noting that the return this token has provided on a year-to-date basis still comes in around 300%. That’s certainly a return most investors will pay attention to, regardless of which asset class you’re looking at over this time frame.

Unlike various stocks which have seen AI adoption form as the biggest driver investors are paying attention to, XRP’s parent company Ripple has been making significant progress in improving its Ledger platform, which allows for cross-border transactions to take place nearly instantaneously and at a fraction of the cost of traditional banking networks. Growth expectations have clearly surged for crypto’s use as a respectable and reliable value transfer mechanism. And if the market does indeed catch on to what early adopters suggest could be a big movement over time, XRP should be a key beneficiary of this trend.

The project’s current market capitalization of around $135 billion suggests there’s some big money behind this protocol that’s betting on its success. Here are a few growth drivers bulls are watching closely right now.

Key Growth Drivers Investors are Watching Closely

One of the most influential factors driving XRP’s recent rally has been Ripple’s partial victory against the U.S. Securities and Exchange Commission (SEC) in August 2024. The legal dispute had cast a shadow over XRP for years, with many investors unwilling to invest in this network for fear that a heightened regulatory environment (with a specific target on this project’s back) may hamper growth over time.

However, with this matter settled, and SEC chairman Gary Gensler seemingly on the way out, investors have breathed a collective sigh of relief. Indeed, the vast majority of XRP’s move higher has come following the re-election win of Donald Trump, confirming that regulatory headwinds really were what’s held this token back in recent years.

Additionally, Ripple’s strategic move to launch a stablecoin (RLUSD) is something that’s garnered significant attention from investors. That’s partly because the New York Department of Financial Services recently approved this stable coin, furthering the project’s already-strong foothold in regulated financial markets.

Another critical aspect of XRP’s rise is its growing adoption by financial institutions. Ripple’s technology has long been known for facilitating efficient cross-border payments, but its developments in decentralized finance (DeFi) and stablecoins are expanding its use cases. The launch of RLUSD is a clear example of Ripple’s ability to adapt to market demands and drive utility for XRP in ways that extend beyond traditional payments.

Where Could XRP Be Headed in 2025 and Beyond?

The future of XRP in 2025 looks brighter than ever, with many prominent crypto analysts predicting continued upside from here. Of course, given the token’s recent rally, it’s likely true that plenty of growth has been priced in at current levels. Some sort of consolidation phase or a significant breather could be expected in the near-term. Thus, over the next few months, it will be interesting to see how this token performs from here.

That’s because the risk-on narrative in the market, as well as the underlying tailwinds which have taken XRP on the ride of its life over the past month, still remain intact. And if the project can show users and investors that more institutions are using its Ledger technology to transfer capital around the world (and other countries jump onto some sort of pro-crypto standard), XRP could be a real beneficiary to watch closely here.

In my view, XRP looks more like a long-term crypto play investors may want to consider on any meaningful dips moving forward. This is a project that provides plenty of utility (something other tokens don’t provide), so there’s something under the hood worth exploring. I wouldn’t be surprised to see XRP easily breach the $3 per token level by the end of 2025, but will certainly be keeping an eye on how this token performs over the course of the year and provide updates.