16th January 2025 – (New York) XRP’s price recently surged to $3 for the first time in six years, before slightly retreating to $2.93. This marks a 30% recovery from its recent low of $2.18 earlier this month.
A significant factor driving this price increase has been the actions of large investors, known as “whales,” who hold between 1 million and 10 million XRP tokens. Their substantial purchases have provided a considerable boost to XRP’s value.
Additionally, the potential approval of exchange-traded funds (ETFs) for XRP in the U.S. has contributed to this upward trend. A recent report from JPMorgan suggests that these ETFs could attract between $4 billion and $8 billion in new investments if they receive regulatory approval. This growing optimism surrounding XRP continues to fuel its price momentum.
The rally in XRP coincided with a revival of meme coins on the XRP Ledger, particularly ARMY, a token associated with the XRP community, which rose by 30% to achieve a market capitalisation of $107 million. Other meme coins, such as PHNIX and LIHUA, also saw gains, with each recording $1 million in secondary trading volumes within a single day. PHNIX’s market cap climbed to $45.6 million, while LIHUA’s reached $35.4 million. These developments follow a significant spike in activity in December, when the XRP Ledger reported record numbers for account activations and transactions. Although many meme coins retraced their gains after that peak, renewed interest in tokens like ARMY indicates a growing optimism within the XRP ecosystem.
In December, the XRP Ledger became more affordable to use after validators reduced the reserve price required to maintain an account by 90%. This change has made the network more accessible and encouraged greater participation. The uptick in meme coin activity has been accompanied by a rise in the usage of decentralised applications (DApps) and unique active wallets, highlighting increased network engagement.
Sologenic (SOLO), another prominent token on the XRP Ledger, also benefited from the bullish sentiment, gaining 7% in one day and over 25% in a week. Since November, SOLO’s market cap has soared by more than 200%, closely tracking XRP’s ascent.
Despite ongoing legal challenges from the U.S. Securities and Exchange Commission (SEC), which has opted not to postpone its appeal regarding the Ripple lawsuit, XRP has demonstrated resilience. Investor confidence remains strong, with XRP’s price continuing to rise. The potential introduction of XRP ETFs to attract substantial investment further bolsters the optimistic outlook for XRP and its ecosystem in the months ahead.
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