XRP Soars to New Heights with 280% Surge in Q4 2024, But Regulatory Challenges Loom Ahead
XRP has made an astonishing comeback in the crypto market, recording a 280% surge in Q4 2024 and reclaiming its spot as the third-largest cryptocurrency by market capitalization, surpassing rivals like Solana (SOL) and Binance Coin (BNB). According to Ripple’s Q4 2024 report, the XRP Ledger (XRPL) decentralized exchange (DEX) saw a whopping $1B in trading volume, further highlighting the resurgence of this once-struggling token.
Ripple Labs CEO Brad Garlinghouse celebrated this historic recovery, noting that Q4 2024 was a defining moment for XRP. Garlinghouse highlighted the launch of the Ripple USD (RLUSD) stablecoin, which hit a $100M market cap within a month, and the filing of XRP-related exchange-traded products (ETPs) by five firms in the United States. With an uptick in institutional interest, Ripple’s XRP is now more firmly positioned for growth despite the challenges it faced in recent years.
XRP: Overcoming Regulatory Hurdles and Market Doubts
Despite a stagnant price for several years following its 2021 all-time high, XRP’s recovery has been fueled by both market momentum and the XRP community’s resilience. Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) has affected the token’s standing, but regulatory clarity has played a significant role in XRP’s recent revival.
One of the factors contributing to XRP’s bullish run is the growing support for a regulatory overhaul in the U.S. As the 2024 U.S. presidential election approaches, former President Donald Trump has called for clearer and more balanced crypto regulations. This political shift has provided a more favorable environment for Ripple and XRP, enabling them to flourish once again.
In addition to the political climate, the rise in XRP-related ETP filings by major financial institutions such as WisdomTree, CoinShares, Bitwise, Canary Capital, and 21Shares has significantly boosted the token’s market sentiment. These developments indicate a growing trust in XRP as a reliable and compliant cryptocurrency.
XRP Faces Regulatory Uncertainty in Hong Kong
While the token price and momentum have been impressive, XRP future remains uncertain in certain regions, such as Hong Kong. Hong Kong’s Securities and Futures Commission (SFC), which oversees licensed crypto exchanges, has yet to grant approval for XRP, despite the regulatory clarity offered by the region’s strict anti-money laundering (AML) and counter-terrorist financing (CTF) compliance standards.
Currently, 10 crypto exchanges have been approved under Hong Kong’s regulations, allowing them to trade a select set of virtual assets legally. However, XRP is notably absent from this list, leaving many to wonder if Ripple’s ongoing legal disputes with the SEC are influencing the SFC’s cautious stance. While no official explanation has been provided, this regulatory uncertainty in Hong Kong could have long-term implications for the token’s adoption in the region.
XRP Price Action: A Setback Amid Market Downturn
At the time of writing, XRP is trading at $2.28 (AU$3.72), marking a 22.5% drop from the previous day. This downturn comes as the broader crypto market faces a market-wide correction, with Bitcoin (BTC) also seeing a dip, now priced at $95K (AU$154K). Despite the short-term volatility, XRP’s long-term growth prospects remain promising, especially considering the positive momentum and the significant institutional support it has garnered.
As Ripple continues to navigate its regulatory challenges, the crypto community remains optimistic about XRP’s future. Its ability to secure strategic partnerships, innovate within the crypto payments space, and weather regulatory scrutiny will be key factors in determining its continued success.
