XRP Ledger (XRPL), the blockchain network that powers the XRP cryptocurrency, is seeing a notable surge in activity, according to recent data from CryptoQuant.
This growth coincides with a significant rally in the price of XRP, which has been on the rise since the US presidential election last November. Donald Trump’s victory in the election has been a key catalyst for this movement, generating optimism in the market and increasing demand for XRP.
XRP usage is approaching the trend line
According to CryptoQuant analyst Maartunn, the frequency of XRP usage for transactions within the XRP Ledger network is on the rise, approaching its trend line. This increase in the circulation velocity of XRP indicates a more active use of the network“This phenomenon is happening on the XRP Ledger right now, and it could break the trendline,” Maartunn stated.
Overall, this growth in activity not only reflects an increase in transactions on the network, but also suggests increased user trust and adoption. With the rise in the price of XRP since November, it is likely that more people have been motivated to participate in the XRP Ledger ecosystem, which is further driving network utilization.
Trump's victory benefits Ripple and the price of XRP
Since Donald Trump won the US presidential election on November 6, the XRP price has seen exponential growth. In less than a month, the cryptocurrency went from $0,50 on November 3 to a 6-year high of $2,82, representing a 430% increase. This bullish move has been fueled by the perception that a Trump-led administration might adopt more favorable policies towards cryptocurrencies and blockchain technology.
Source: CoinMarketCap
Trump, known for his pro-business stance and skepticism towards excessive regulation, has raised expectations of a friendlier regulatory environment for companies like Ripple, the company behind XRP. Moreover, his victory has revitalized investor confidence in the cryptocurrency market, boosting the use of networks like XRPL.
RLUSD and Paul Atkins' Leadership: Catalysts for the Future of XRP
In addition to the impact of the US election, two recent developments could continue to boost the price of XRP in 2025: the launch of the regulated stablecoin RLUSD and the appointment of Paul Atkins as Gary Gensler’s successor as chairman of the Securities and Exchange Commission (SEC).
On December 17, Ripple launched its Ripple USD (RLUSD) stablecoin, issued on both the XRP Ledger and Ethereum. This stablecoin is designed to be fully regulated and pegged to the US dollar, making it an attractive tool for traditional companies looking to tokenize real-world assets (RWA).
Thanks to its features, the launch of RLUSD could encourage greater use of XRPL as it would facilitate the creation of liquidity flows within the network. Ripple has already begun to explore this potential through its partnership with Archax and abrdn to launch a tokenized money market fund.
On the other hand, the appointment of Paul Atkins, a well-known cryptocurrency advocate, as the SEC leader has raised expectations of a more balanced and sector-friendly regulatory approach. Atkins has been critical of the SEC’s aggressive actions against companies like Ripple, and his leadership could pave the way for greater regulatory clarity and institutional adoption of XRP.
Optimism about the future of XRP
The XRP Ledger is experiencing a moment of growth driven by the rising XRP price and increased network activity. Donald Trump’s victory in the US elections has been a key factor in this rally, generating optimism in the market and increasing demand for XRP. Additionally, the launch of RLUSD and Paul Atkins’ leadership at the SEC could be important catalysts for the XRP price in 2025.
With these developments, XRP is positioned as one of the most promising cryptocurrencies for the coming year. Ripple CEO Bradley Garlinghouse has stated that, amidst this scenario, XRP could regain its status as the second most capitalized cryptocurrency on the market, which could add more users to the network and, therefore, boost its usage and activity.
