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Optimism among XRP investors is on the rise as developments around Ripple’s SEC lawsuit and a decrease in escrowed XRP holdings fuel bullish expectations. Notable crypto analyst Ben Armstrong, also known as BitBoy, predicts XRP could reach $10, and growing interest in XRP ETFs suggests heightened institutional demand. The potential for XRP to surpass Ethereum in the medium to long term is drawing significant attention in the crypto world.
SEC Lawsuit No Longer a Barrier to Growth
Armstrong believes the impact of Ripple’s legal battle with the SEC on XRP’s price has waned. Although the case is still in appeal, BitBoy asserts that investors now view XRP as increasingly independent of regulatory pressures. As U.S. crypto regulations become clearer, Armstrong anticipates a more liberated price performance for XRP.
The SEC’s prior classification of XRP as a “security” once sparked concern, but Armstrong highlights that these fears are fading. He argues that as XRP emerges from regulatory uncertainty, institutional investors are drawn to it as a viable “enterprise asset” poised to rival projects like Ethereum.
Ripple’s Escrow Reduction Boosts Investor Confidence
The reduced XRP balance in Ripple’s escrow accounts is seen as a positive development among investors. XRP advocate Bill Morgan recently noted that escrowed XRP has dropped to below 39% of the total supply, suggesting Ripple’s controlled reduction could benefit supply-demand dynamics. This trend may ease downward pressure on XRP’s price, fostering a healthier market balance.
Previously, the SEC had alleged that Ripple’s escrow holdings artificially inflated XRP’s value, a claim Ripple refuted by emphasizing these reserves as a measure of financial responsibility. This reduction in escrowed XRP is refreshing investor confidence and potentially opening new avenues for growth.
Rising Institutional Interest in XRP
Ripple CEO Brad Garlinghouse has expressed optimism about XRP’s future. The recent ETF application by 21Shares for an XRP-backed fund with the SEC highlights the increasing institutional interest in XRP. Garlinghouse sees this as a catalyst for accelerating the adoption of XRP, while other institutions, such as Bitwise and Canary Capital, are also exploring XRP ETFs.
With XRP currently trading at $0.5053 and a daily trading volume increase of 44% to $919 million, short-term predictions suggest a potential rise to $0.8. BitBoy envisions an even more ambitious future, speculating XRP could reach $16-22 by 2025 and possibly surpass Ethereum in market cap.
XRP’s Rally Potential Remains Strong
Thanks to reduced escrow balances, decreasing impact from the SEC case, and rising institutional interest, XRP is capturing investor attention. BitBoy’s $10 target for XRP has generated excitement among crypto enthusiasts, making it essential for investors to monitor these developments closely as they could shape XRP’s future price trajectory.
