In a recent blog post, Bitwise highlighted the mainstream adoption of crypto assets, with Bitcoin and Ethereum spot ETFs achieving significant milestones. Let’s delve deeper into why Bitwise believes XRP stands out in a unique position and how it holds substantial upside potential.
Crypto Enters Mainstream: 2024
The year 2024 has been transformative for crypto assets, marking their entry into the mainstream era. With Bitcoin and Ether spot ETFs successfully launched, anticipation grows for Solana and XRP ETFs potentially following suit. Bitwise has made five key observations about XRP in its blog post, emphasizing its resilience and consistent ranking among the top five crypto assets by market cap worldwide.
XRP’s Track Record
XRP has not only endured but thrived, outperforming Bitcoin in two consecutive bull market cycles. This achievement places it in a unique category, alongside Dogecoin and, to an extent, Ethereum. Such performance underscores XRP’s robust market presence and potential for further growth.
Significant Investor Interest
Bitwise has identified a notable retail interest in XRP, supported by relative Google search trends. A recent survey by EY among retail investors revealed that XRP ranks among the top four crypto assets by retail investor allocation. This indicates substantial investor interest in the filed spot XRP ETFs in the US, dominated primarily by retail participants.
XRP To Benefit The Most!
Bitwise emphasizes that XRP stands to gain significantly from the recent shifts in the US administration and the reduction of regulatory uncertainties. With Gary Gensler stepping down as SEC chairman on January 20, 2025, XRP has already seen a remarkable rally of +188% since the US elections on November 5, 2024.
XRP’s Real Use Cases
Furthermore, Bitwise highlights XRP’s extensive real-world applications, particularly in cross-border remittance and general payment sectors. Ripple’s partnerships, such as those with SBI Remit and MoneyMatch, are driving innovation through instant cross-border remittances to global suppliers. XRP’s capability to meet the growing demand for instant payments is evident, with an average payment finality of just 4 seconds and a theoretical scalability of up to 1,500 transactions per second. Even capturing a small share of the global cross-border payments market could substantially boost transaction count and network activity for XRP.
“XRP Not Overvalued”
Despite XRP’s significant performance following the US elections, it remains reasonably valued, with considerable upside potential. According to the Market Value-to-Realized Value (MVRV) metric, XRP is not overvalued, offering room for further appreciation.
XRP: The Next Big Thing!
After evaluating these factors, Bitwise asserts that XRP is poised to be part of the next wave of spot ETF approvals in the US, with significant upside potential. Additionally, in a recent development, Ripple’s strategic investment in Bitwise’s XRP exchange-traded product (ETP) has piqued interest across the crypto industry. Ripple’s financial backing of Bitwise’s GXRP ETP signifies a calculated move towards institutionalizing XRP, suggesting a promising future for this digital asset.
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