With a 300% increase in just one month, XRP is only warming up.

With a 300% increase in just one month, XRP is only warming up.

The value of XRP, the cryptocurrency of Ripple, has increased by more than 300% in a single month and is currently up about 1,000% from its early 2021 price of $0.22 to $2.37. As a result of its recent surge, XRP is now the fourth-largest cryptocurrency in the world, right behind Bitcoin, Ethereum, and Tether, with a market valuation of almost $135 billion. Interestingly, the spectacular 200% returns that AI posterchild NVDA's stock has generated so far this year pale in comparison to XRP's advances (Sell Nvidia, Buy Intel Stock?)

As a result of the extraordinary interest in cryptocurrencies following Donald Trump's victory in the U.S. presidential election, XRP's rise is similar to the pattern observed in other cryptocurrencies. Ultimately, during one of his rallies, Trump declared that he would turn the United States into the global "crypto capital." For the first time ever, this has caused the most well-known cryptocurrency, Bitcoin, to surpass $100,000, more than doubling from its starting point of $44,000 at the start of the year. In addition, the High Quality portfolio has outperformed the S&P and generated returns of over 91% since its inception, making it a better option for investors seeking upside with a smoother ride than cryptocurrency.

The cryptocurrency XRP is used by the digital payment network Ripple to enable quick and inexpensive international money transactions. Ripple's move in XRP isn't just motivated by the Trump factor. The U.S. SEC claimed in 2020 that Ripple sold XRP to investors in an unregistered security offering in 2013, raising over $1.3 billion. According to Ripple, XRP is not really a security. When XRP was offered for sale on an exchange, the court decided in 2023 that it was not a security and did not contravene federal securities laws.

The digital payment network Ripple uses the cryptocurrency XRP to facilitate rapid and affordable international money transfers. There are other reasons behind Ripple's investment in XRP besides the Trump issue. The U.S. Securities and Exchange Commission (SEC) asserted in 2020 that Ripple raised more than $1.3 billion in 2013 by selling XRP to investors in an unregistered security sale. As per Ripple, XRP isn't actually a security. The court determined in 2023 that XRP was not a security and did not violate federal securities laws when it was offered for sale on an exchange.

What was the outcome? On January 20, 2025, Gary Gensler, the current chair of the SEC, will step down. It is likely that the incumbent will be more crypto-friendly. The proponents of cryptocurrency will view Paul Atkins favourably as one of the potential candidates. The SEC may decide to abandon the entire action against Ripple, which would be good news for XRP. With the Trump administration, XRP has had a fantastic couple of months overall, and this breakout may be the start of a much bigger surge. The RLUSD stablecoin's upcoming introduction by Ripple is probably going to be a major factor in XRP's rise.

Even though XRP has increased by 1000% since the beginning of 2021, the returns haven't been steady. In 2021, XRP yielded 278%, in 2022, -59%, and in 2023, 81%. In contrast, the S&P 500 returned 27% in 2021, -19% in 2022, and 24% in 2023. This suggests that XRP did not do as well as the S&P in 2022. Indeed, in recent years, individual equities and even cryptocurrencies have had a hard time consistently outperforming the larger markets, both in good and bad times. The Trefis High Quality Portfolio, which consists of 30 stocks, has, on the other hand, consistently beaten the S&P 500 during the same time frame.