Ripple (XRP) is up there with the crypto giants, ranking fourth among all digital currencies by market capitalization. If you know anything about crypto, you’re probably aware that it takes a special combination of factors for a crypto project to thrive in this highly competitive industry and maintain its position in the long run. XRP is no different. It wasn’t a stroke of luck or a series of fortunate events that pushed XRP to the top but a specific mix of elements that converged to make its rise possible.
Reading the XRP news today can help you stay up to speed with the asset’s current standing and prospects for the future, but it won’t provide you with much knowledge of its past or uncover the secrets to its success. And while some may prefer to focus on the present and keep their eyes on the latest token updates and predictions, learning about an asset’s background is just as important. This will provide you with insights into its strengths and weaknesses and help you gain a more comprehensive understanding of its potential, which is crucial if you’re thinking about investing.
So, if you want to learn about XRP’s background, here’s a closer look at its journey into the crypto space so far and how it got to where it is now.
A payment pioneer
XRP is the creation of Ripple Labs, a tech company founded by Chris Larsen, Jed McCaleb, and Arthur Britto and originally named Opencoin. In 2012, Ripple Labs launched the XRP Ledger (XRPL) blockchain along with its native token XRP. The platform was specifically designed as a payment solution that facilitates cross-border transactions between different parties without the intervention of a central intermediary like banks or financial organizations.
The Ripple blockchain guarantees lightning-fast speeds and low fees, which makes it a perfect option for financial institutions, payment providers, and all those who perform frequent international transfers. Transactions are usually settled in as little as 3-5 seconds, and the network has a processing capacity of up to 3,400 TPS, being much more convenient and cost-effective than other digital payment models. The XRP token is instrumental in fuelling tractions on the ledger and enabling cheap, real-time global payments.
Therefore, Ripple is not just another blockchain system that’s indistinguishable from the rest. It’s a payment pioneer that leverages the power of blockchain technology to revolutionize international settlements. XRP’s value comes from having real-world utility as it addresses a real need that people and organizations have these days. This functionality ensures a constant demand for XRP, which drives greater adoption.
A resounding victory over the SEC
For the past few years, Ripple has been caught in a long and strenuous legal battle with the U.S. Securities and Exchange Commission (SEC). The feud began in 2020, with the SEC filing a lawsuit against Ripple for conducting an illegal offering in 2013 when the company had sold XRP to investors through private sales and partnerships, raising $1.3 billion. The SEC argued that XRP constituted an unregistered security, so its sale went against the regulatory requirements of the Securities Act of 1933.
Ripple fought back, stating that XRP was in fact a digital currency meant to be used as a means of exchange, just like Bitcoin and Ethereum, so they didn’t violate securities laws by selling it. After much back and forth on the matter, with various motions, victories and setbacks on both sides, the SEC finally dropped the case against Ripple this March.
Many worried that the dispute with the US regulator would end up destroying Ripple’s reputation and cause irreparable damages that would hinder its development. While these legal actions may have reflected negatively on Ripple, it also brought a lot of publicity to its asset.
Ripple’s legal victory removed the uncertainty that kept the project from advancing and restored credibility and trust in the asset. As a result, XRP is now poised for further growth, with investors, companies, and developers expected to take a greater interest in the network and its native token.
Spot XRP ETFs in the spotlight
Last year, the crypto market was buzzing with anticipation for the launch of spot Bitcoin and Ethereum exchange-traded funds (ETFs), which eventually came to pass for both assets. This year, it’s XRP’s turn to cause waves in the industry with rumors of a potential spot XRP ETF being approved in the near future.
The fact that industry giants like WisdomTree, 21Shares, and Canary Capital have already submitted applications with the SEC to launch XRP-based ETFs serves as an indication that these products could soon become a reality. Most analysts also seem optimistic about the possibility of having XRP follow in Bitcoin and Ethereum’s footsteps in this respect.
As expected, these rumors have led to an influx of investments, with a recent report revealing that XRP registered a $95 million inflow in just one week. The ongoing hype around XRP can help the asset solidify its position as an investment instrument.
The emergence of Ripple’s stablecoin RLUSD
The debut of Ripple’s stablecoin RLUSD in December 2024, following approval from the New York Department of Financial Services (NYDFS), is another aspect that has had a positive impact on XRP’s development. Immediately after RLUSD’s launch, the XRP price surged by 26%, signaling increased interest from traders and investors.
The US dollar-backed asset, which integrates seamlessly with XRP’s protocol, is aimed at helping Ripple expand its capacity to facilitate cross-border transactions. This means that Ripple’s presence and influence in the global financial system could become even greater in the future.
Trump’s reelection, which is largely regarded as a positive development for crypto, may also benefit XRP and all other major cryptocurrencies. A crypto-friendly administration could lead to more lenient regulations and propel crypto into the mainstream.
XRP’s evolution over the years is nothing short of impressive, being fueled by strong fundamentals, the ability to withstand legal challenges and ongoing developments that are bound to keep the asset in investor’s minds and portfolios.
