XRP Begins 2025 with a Significant Price Surge

XRP, the cryptocurrency developed by Ripple Labs, entered 2025 with a strong price surge, reaching levels last seen in early December. This marks a promising start for the digital asset in the new year.

In the past 24 hours, XRP’s value has increased by 13%, peaking at $2.43. Currently, the price sits at $2.40, which is still 35% below its all-time high (ATH).

This bullish movement has resulted in XRP reclaiming its position as the third most valuable cryptocurrency by market capitalization, surpassing USDT with a valuation nearing $138 billion. This achievement highlights XRP’s growing presence in the cryptocurrency industry.

Recent trends showcase XRP as a standout performer during this bullish market phase, which analysts attribute, in part, to significant political developments in the United States. The victory of Donald Trump in the presidential elections has stirred optimism among market participants, particularly with the anticipated departure of Gary Gensler as chairman of the Securities and Exchange Commission (SEC).

Under Gensler’s leadership, the SEC imposed strict measures on cryptocurrency projects, classifying many of them as unregistered securities. These legal challenges created substantial financial burdens for companies, including Ripple Labs, which has been embroiled in a lawsuit against the regulatory body since December 2020. However, the US courts recently ruled that cryptocurrencies like XRP are considered securities only under specific circumstances, such as institutional sales. Despite this, the SEC has appealed the decision, prolonging the case.

The departure of Gensler as SEC chairman is expected to shift the regulatory stance toward a more balanced approach, potentially providing a further boost to XRP’s market outlook. Ripple’s legal director, Stuart Alderoty, expressed hope that 2025 will usher in clearer and more consistent cryptocurrency regulations.

Adding to the bullish momentum, Ripple recently released its monthly batch of 500 million XRP, equivalent to $1.2 billion, from escrow accounts. Escrow serves as a mechanism that regulates XRP’s supply, helping stabilize its price by preventing sudden overflows into circulating supply. Ripple uses these XRP batches to fund operations, maintaining control over market liquidity.

Institutional Adoption Fuels XRP’s Growth

In recent developments, institutional adoption is playing a pivotal role in driving XRP’s price surge. Financial institutions across the globe are increasingly integrating XRP into their systems. One notable example is Japan’s SBI Group. According to its CEO, Yoshitaka Kitao, approximately 80% of Japanese banks are projected to adopt XRP by the end of 2025, revolutionizing the country’s financial infrastructure.

This integration aims to resolve critical inefficiencies in the traditional financial system, such as slow cross-border transactions and costly fees. By streamlining international payments, XRP continues to solidify its role as a game-changer for global finance, securing its position as one of the most promising assets in the cryptocurrency market.