XRP experiences 280% surge in value due to changes in regulations
XRP has experienced a substantial surge of 280% in the final quarter of 2024, primarily due to shifts in regulations and heightened institutional interest. The latest XRP Markets Report released by Ripple highlighted this remarkable rebound for the cryptocurrency during this period. Following regulatory actions by the U.S. Securities and Exchange Commission (SEC) that negatively impacted XRP for years, its resurgence in Q4 was noteworthy.
For years, XRP faced market manipulation from the SEC which limited its potential, but the easing of regulatory pressures allowed it to bounce back significantly, growing by an impressive 280% during the last quarter. The change in regulations, combined with an executive order from President Donald Trump encouraging crypto innovation, contributed to renewed excitement in the market. The quarter also witnessed a surge in XRP’s trading volume, with prominent platforms such as Binance, Upbit Korea, and Coinbase leading the way.
Moreover, institutional demand for XRP products strengthened during this period, with key financial institutions expressing interest in a spot XRP exchange-traded fund (ETF). This heightened demand was reflected in filings by major firms like WisdomTree and Coinshares for an S-1 spot XRP ETF, joining existing ETF issuers like Bitwise, Canary Capital, and 21 Shares.
Despite ongoing legal battles, particularly with the SEC filing an appeal on January 15, 2025, Ripple remained optimistic. The appeal was seen as a reiteration of previously rejected arguments by the SEC, with Ripple planning to respond formally by April 16. Noteworthy changes in the U.S. regulatory landscape included the repeal of SEC Staff Accounting Bulletin 121 (SAB 121) and the appointment of Acting Chairman Mark Uyeda following Gary Gensler’s resignation as SEC Chair.
These regulatory developments were perceived as a step towards a more innovation-friendly environment for the industry, accentuated by Trump’s executive order that underscored stablecoin development, improved banking access for crypto firms, and sought to offer regulatory clarity for the digital asset sphere. Ripple’s CEO, Brad Garlinghouse, shared his excitement for Q4 2024, noting milestones such as five firms filing for XRP-related ETPs in the U.S., RLUSD launching successfully, and significant trading volume on the XRPL DEX in the last quarter.
Looking beyond the U.S., the report emphasized global regulatory progress like the introduction of the Markets in Crypto-Assets (MiCA) framework in Europe and expanding crypto policies in regions like Hong Kong and South Korea. Updates to the XRP Ledger (XRPL) included increased transaction volumes, rising wallet creations, and growing institutional adoption. Ripple’s introduction of RLUSD, a stablecoin designed for cross-border payments and decentralized finance (defi) integration, was also seen as a positive development. Lastly, asset tokenization on XRPL gained traction, positioning XRP well for sustained growth amidst evolving regulatory standards.