Why is XRP on the rise while the other crypto coins are relatively flat? This question is becoming popular among investors, especially when the price of XRP has risen significantly. In the last few days, XRP has surged ahead of the rest of the cryptocurrency market, moving up while other cryptocurrencies stagnate. Now let’s look at some of the fundamentals that are propelling the XRP token northwards.
Over the past day, XRP has increased by about 1.5%, reaching its daily high of $0.6328. The global cryptocurrency market has slightly reduced by 0.3%, while XRP has risen. Its market capitalization has also increased to $35.4 billion, within the cryptocurrency markets it has become the seventh-largest.
One reason for such a price rise is the increase in trading volume as presented by the following cross-sectional analysis. XRP's spot trading volume soared to $2.2 billion on September 28 from $940 million in the previous week’s data. This increase in trading signals strong market interest and adds to the cause of the increase in our prices.
Ripple has gone further to diversify its core products, drifting from both XRP and payment services to the crypto custody business. Crypto custody, a service that enables institutions to securely store and manage their digital assets, is still relatively new. Ripple’s new custody services are aimed at banks and Fintechs, enabling banks to store digital tokens for their customers.
By entering this sector, Ripple has been able to increase XRP’s worth. This is where it outlines that the firm is planning on expanding its services in a way that it will not solely rely on XRP’s output. Therefore, the introduction of Ripple Custody is an excellent investment outlook demonstrating the further link of revenue services, which are not entirely dependent on only cryptocurrency products.
One of the reasons behind the surge in the XRP price is that Ripple can attract mega financial institutions. Other established names in banking, which are currently using Ripple’s Ripple Custody are HSBC, Societe Generale, and DBS among others. Therefore, as more financial institutions seek ways to include digital assets in their corporate structures, Ripple’s solutions may become, in turn, increasing the use and, the need for XRP.
However, Ripple has developed the XRP Ledger technology, which permits the trading of virtual assets such as fiat currency, assets, commodities, or real estate. This produces new demand for XRP, thus laying out more purposes for this asset. Tokenization allows for the easy breaking down of assets into tradable forms as well as faster trading at a lower cost, which is critical for any financial institution seeking to efficiently manage assets.
SEC has been the major influence on the XRP price fluctuations regarding its legal status in the United States of America. The crypto community praised the evaluation by a US court in the year 2023 that the XRP must not be regarded as security while sold to unmistakably retail consumers. However, there is relative volatility in the current legal initiatives like the new hope that has made the SEC appellate this current ruling.
This market sentiment is optimistic even though legal battles are going on. Others argue that the court case will go well for Ripple much as it has been adopted as a legal trend, giving investors a confidence boost. Every news concerning the case is positive and boosts the price of XRP while every negative article oppositely impacts the price of XRP. At the moment, it is hoped that it is coming out on top and that the XRP keeps on rising.
Additionally, it has risen more than Bitcoin over the last few days by 1000 percent even with its market cap standing taller than XRP at 35th. And while Bitcoin pulled back and was trading below $66,000 per coin, XRP continued to soar. In the last 90 days, the price of XRP has risen by 31% – a much sharper rise than Bitcoin, which was up by 5 %. This massive deviation shows that XRP is on a growth trajectory on its own and not influenced solely by Bitcoin and other cryptocurrencies.
This comes while the entire crypto market is still bearish with some cryptos registering slight gains and others experiencing cuts in their market value. While many cryptocurrencies are barely in motion or moving south, XRP is having a sea of green. Some of it is attributable to an increased awareness of cryptocurrencies and blockchain in various fields. With more actual assets going digital, instruments such as XRP, the cryptocurrency in focus here, also benefit from this.
Some of them are convinced that if the whole crypto market experiences a massive shift upward, XRP will gradually climb up as well. From the current price action, one can tell that it is particularly well-suited to capitalize on any future market sentiment that would see the price move northwards.
As for now, there is every indicator that XRP has a bright future lining up for it. For long-term growth, it can be deemed favorable that Ripple is stepping into the sector of crypto custody, has numerous institutional clients growing its list, and is continually seeing the tokenization of the real economy. Periodic volatility is expected from the continuation of litigation with the SEC, while the tone is still positive.
Also, the prospects of Ripple to expand the company and turn attention to the segment that is located several steps above XRP payments add to the stock’s resilience. Given an increase in the sector within the next year, Ripple Custody could be one of the leaders, thus strengthening the community’s demand for XRP.
Primary moving forces that contribute to the increased price for XRP are as stated below. The new line in crypto custody services, higher institutionalization, and the upward tonality of the crypto market have contributed to its worth. That is why, despite certain legal ambiguities, XRP can be considered by this author as one of the most prospective cryptos, which needs to be kept an eye on with the progress of the modern world for cryptocurrency. But as Ripple adds more products, and gets more customers, there’s every reason to believe XRP’s price will keep on rising.