Why is the Ripple (XRP) Price Up Today?

TL;DR

• Ripple (XRP) outshined other major cryptocurrencies with a 6% daily increase, fueled by Brazil’s approval of the world’s first spot XRP ETF and other potential factors.
• Such a product may also see the light of day in America, with the US SEC acknowledging the applications of Grayscale, 21Shares, and Bitwise.

XRP Outperforms Its Rivals

The cryptocurrency market has experienced a slight revival in the past 24 hours, with Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other leading digital assets witnessing minor gains.

However, Ripple’s XRP is the best performer in the top 20 club, recording a 6% daily price increase. It briefly climbed to a local top of $2.74 before settling at the current $2.71 (per CoinGecko’s data).

One major development coming from Brazil is perhaps the most likely reason fueling the rally. The country’s securities regulator – the Comissão de Valores Mobiliários – approved the world’s first spot XRP exchange-traded fund (ETF).

The investment vehicle allows investors to gain exposure to the asset without purchasing it from exchanges or worrying about self-custody. 

It is worth mentioning that many well-known companies, such as Grayscale, Bitwise, and 21Shares, have displayed their intentions to launch such a product in America. The US Securities and Exchange Commission (SEC) acknowledged their applications, meaning it has to approve or reject the filings officially in the following months. 

Another factor positively impacting XRP’s latest resurgence could be the whales’ activity. Earlier this week, large investors accumulated 150 million tokens (worth almost $400 million) in the span of 48 hours. 

Continuous efforts in this field will decrease the coin’s circulating supply, potentially boosting its value (provided demand remains steady). Additionally, the whales’ moves often inspire smaller players to enter the ecosystem, bringing in fresh capital.

The crypto analytics platform Santiment recently estimated that the number of XRP whales and sharks (those holding more than 100K XRP) has increased by 261 in the past 10 weeks. This suggests that large investors remain confident in the asset’s future potential despite its price fluctuations. 

Bonus: The Trump Effect

It is worth mentioning that XRP’s rally could also be linked to some of the US president’s latest actions. As CryptoPotato reported, Trump recently published two articles about Ripple’s expansion on American soil since his presidential victory. 

His interaction sparked huge speculation across the XRP community, with some members viewing this as a catalyst for a price explosion for the token in question.