In a latest blog post, Bitwise has outlined the mainstream adoption of crypto assets as Bitcoin and Ethereum spot ETFs achieve significant milestones. Lets delve deeper to find out why it believes XRP stands out in a unique position and how it holds significant upside potential.
2024 has been a remarkable year with crypto assets entering the mainstream era. While Bitcoin and Ether spot ETFs have successfully witnessed their launch, Solana and XRP ETF might just be the next in line.
Bitwise underscored 5 key observations about XRP in its blog post. Noting its track record, it pointed out that XRP has stood the test of time and remains among the top 5 crypto assets by market cap in the world. Also, it is one of the few crypto assets that has outperformed Bitcoin in two consecutive bull market cycles, which has only been achieved by Dogecoin and to some extent by Ethereum so far.
Secondly, Bitwise notes that it has identified a significant retail interest for XRP based on relative Google search interest. It backed its observation by citing a recent survey by EY among retail investors, which reveals that XRP ranks among the top 4 crypto assets by retail investor allocation.
It noted that US spot crypto ETFs are generally still dominated by retail investors, which potentially implies significant investor interest for the filed spot XRP ETFs in the US.
Bitwise has emphasized that XRP is probably the token that should benefit the most from the recent change in the US administration and the decline in regulatory uncertainty, particularly because Gary Gensler has announced to step down as SEC chairman on the 20th of January 2025. Remarkably, XRP has already rallied +188% since the US election on the 5th of November 2024.
Further, Bitwise has also pointed out XRP’s wide array of real use cases, which mostly centre around cross-border remittance payments and payments in general. It noted Ripple’s partnerships like SBI Remit and MoneyMatch, that drive innovation with instant cross-border remittances to global suppliers.
It underscored XRP’s ability to cater to the increasing demand for instant payments, with a payment finality of only 4 seconds on average and a maximum theoretical scalability of 1,500 transactions per second. It underscored that a small percentage of the global cross-border payments market could significantly impact transaction count and network activity for XRP.
Finally, it highlighted that despite the significant performance of XRP following the US elections result, XRP is still reasonably valued and has significant upside potential
Despite the significant performance of XRP following the US election results, XRP is still not overvalued based on the Market Value-to-Realized Value (MVRV) valuation metric.
After considering all these aspects, Bitwise claims that XRP is going to be among the next wave of spot ETF approvals in the US with significant upside potential.
Besides, in a recent development, Ripple’s strategic investment in Bitwise’s XRP exchange-traded product (ETP) has sparked curiosity across the crypto industry. Ripple’s financial backing of Bitwise’s GXRP ETP represents a calculated step toward institutionalizing XRP.
A South Korean court has sentenced three members of a crypto scam ring to prison…
XRP has shown some interesting price movements over the past 24 hours, with increased trading…
Amid the bearish market sentiment, Cardano's (ADA) price prediction has become a key topic among…
Bitcoin is about to close the monthly trade on a bearish note, which may hinder…
Shiba Inu(SHIB) has been making headlines, especially with its recent development. It has started flashing…
Solana experienced an extraordinary surge, leaving many wishing they had invested sooner. Now, four small…
