- XRP has been tipped to take over the crypto industry by market cap; however, three main events would have to occur for this to materialize.
- Analysts believe that a potential approval of the spot XRP Exchange Traded Fund (ETF) could be the “magic wand” for this anticipated growth.
As highlighted in our last analysis, XRP has shown resilience, holding above the $2.3 level and printing gains on most of the major trading sessions. Currently, investors appear indecisive as the Relative Strength Index (RSI) “sits” at the neutral territory at $50.
However, analysts believe that XRP could make a significant surge to cement its position as a true powerhouse with a historic market cap. Looking into this, we found three factors that could fuel this milestone.
XRP ETF Approval
Almost 18 XRP spot exchange-traded funds (ETFs) are awaiting decisions from the US Securities and Exchange Commission (SEC). According to the prediction platform Polymarket, there is a 79% chance that the SEC will approve an XRP ETF this year. As indicated in our earlier post, the related ETFs by Grayscale, 21Shares, Bitwise, and Canary could receive decisions by October 18, October 19, October 20, and October 24, respectively.
Fascinatingly, the impact on the overall price is expected to be massive. As recently mentioned in our news story, JPMorgan has estimated that the spot XRP ETF and its Solana counterpart could attract a combined amount of $14 billion in their first year.
Establishment of the RLUSD
Ripple’s stablecoin RLUSD has officially gained ground after the US government unveiled the GENIUS Act to legalize its usage. With this, Ripple and its native token, XRP, could cement their position as a leader in cross-border payment.
As explained in our recent blog post, the GENIUS Act would regulate crypto to protect consumers while setting the standard to become a mainstream tool. Basically, this bill guides the operation of issuing and exchanging stablecoins. According to the founder of the MIT Cryptoeconomics Lab, Christian Catalini, this initiative encourages competition and promotes better use cases.
This opens the floodgates. You’ll see entry by many issuers. Consumers will all have more choices. This will bring more competition and innovation in payments.
Competing SWIFT
XRP is reported to be challenging the dominance of SWIFT with its instant settlement and cheaper fees. In a recent update, CNF emphasized XRP’s position as SWIFT’s alternative. In that report, an excerpt of Boston University’s academic document titled “Review of Banking & Financial Law” was analyzed. Banks that adopt Ripple were said to save up to 60% of their “total processing costs on a $500 payment”.
Morgan Stanley was also reported to have said:
Adopting a Ripple-like payment system could significantly reduce settlement times while reducing the risk of fraud and speeding up transactions.
With all of these expected to reflect in the price, XRP has been tipped to surge to $27. As detailed in our previous post, the market cap is reported to have the potential to reach at least $1 trillion during the bull market.
