In the cryptocurrency industry, early entry strategies often yield substantial profits. This is clearly evidenced by the example of Ripple Labs, whose valuation currently exceeds $40 billion.
After years of litigation with the SEC, the regulatory climate has significantly eased under the Trump administration. Since the U.S. presidential elections in 2024, the price of the XRP token, launched back in 2012, has remained above the $2 level. Such metrics have not been seen since the 'bull' market of 2017. However, the question of the actual utility of the asset remains relevant.
International payment corridors and geography of use
The CEO of liquidity provider Block Street, Hedi Wang, notes that Ripple's position in the US may strengthen, but the company already has a solid base abroad. Due to regulatory pressure from the SEC, interest in the United States has previously been limited to retail investors and offshore platforms.
"Historically, the asset shows significant popularity in Japan and East Asia. Demand is also noticeable in corridors dependent on remittances, such as the Philippines or Latin America, due to partner networks," Wang said in an interview with BeInCrypto.
Investment activity has significantly increased over the past year. Since Donald Trump's election in November 2024, quotes have jumped from $0.50 to $2.15. The total increase was 330%.
Certified auditor Gregory Monaco makes a distinction between key assets. If Bitcoin is perceived as "digital gold" and Ethereum is known for smart contracts, the value of XRP lies in cross-border settlements. The expert points to the Ripple network, which includes 300 financial partners in 45 countries. The annual transaction volume reaches $15 billion, indicating a working use case.
If the company behind the cryptocurrency continues to accumulate licenses and integrate with banks, the token could occupy a niche in financial infrastructure.
The challenges of cross-border transfers and the role of blockchain
Traditional international transfers are often associated with bureaucracy, low speed, and high costs. Additionally, the process requires currency conversion. Cryptocurrencies like XRP offer an unlimited and inexpensive alternative. This reduces the traditional financial sector's (TradFi) dependence on outdated payment systems.
However, mere optimism does not guarantee a direct connection between the asset's valuation and its utility. BrokerListings researcher Paul Holmes emphasizes the speculative nature of the instrument. In the crypto market, capitalization is often not backed by direct income flows. It depends on the creation of liquidity and the redistribution of capital from other savings vehicles.
Prospects for ETF launches and investment products
Recently, the British company CoinShares abandoned plans for a spot ETF on XRP in the US. This product could have stimulated demand from market participants. Paul Holmes believes the decision is related to the lack of definitive regulatory clarity from the SEC regarding the asset's status.
It is worth noting that CoinShares also refrained from creating funds based on Solana or Litecoin. Nevertheless, Ripple representative Raquel Amanda emphasizes the current utility of the token.
"XRP is already used for transferring value between currencies, stablecoins, and tokenized assets. As the ecosystem expands, the need for neutral and fast settlements increases," said Amanda.
According to CoinGecko, the asset's price has increased by more than 36,000% since trading began on August 3, 2013.
However, the irony of using a speculative asset for making payments has not escaped the attention of Holmes from BrokerListings.
"On-chain activity shows between 50 to 55 million transactions with XRP per month, and most of them are payments," he noted. "At the same time, for many, XRP remains a speculative tool rather than a utility asset, and one should not expect reliable value preservation from it."
Institutional adoption and network activity
XRP functions as "programmable money." The code allows for the use of the necessary number of coins based on the current rate. For large institutional transfers, the technical side is secondary; the speed of fund delivery is important. While stablecoins are popular in the consumer sector, the native Ripple token acts as a logistical tool for global corporate transfers.
This specificity explains the high centralization of activity. According to Gregory Monaco, about 58% of transactions on the network account for just ten wallets.
The growth of the user base and the resolution of the conflict with the regulator create a positive backdrop. By the beginning of 2024, the number of wallets exceeded 5 million. After Trump's victory, the broker Robinhood returned the token to the listing on November 13, 2024. A key event was the settlement of the dispute with the SEC in May 2025 for $50 million. This lifted long-term restrictions on the development of the asset.
Even without a new ETF from CoinShares, nine investment products based on XRP are already present in the market. Their total assets under management (AUM) reach $1.1 billion. The investor community sees less risk and significant growth potential in the current environment.
