Summary
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Trump’s Crypto Reserve Proposal Sparks XRP Surge: Former President Trump’s suggestion of a US strategic crypto reserve, inclusive of XRP, triggered a swift near 40% price jump for the cryptocurrency, demonstrating the significant market impact of policy discussions.
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XRP Network Sees Explosive Wallet Growth & Transaction Volume: Active XRP wallets have increased by over 600% in a week, coinciding with a surge in on-chain transactions exceeding $5.37 billion in a single day, indicating a dramatic increase in network utilization and adoption.
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Whales Accumulate XRP Amid Regulatory Optimism, but Analyst Warns of Potential Sell-Offs: Large investors (“whales”) have been accumulating XRP, driven by hopes of crypto-friendly policies and a favorable resolution to Ripple’s SEC case. However, some analysts caution that these same whales might capitalize on the price increase by selling their holdings, potentially dampening future price gains.
After a robust price recovery on Tuesday, XRP exhibited relatively stable trading on Wednesday.
This recent price rebound was initially spurred by former President Donald Trump’s proposition for a national strategic cryptocurrency reserve that would include XRP.
Trump’s announcement on Sunday served as a catalyst, igniting an almost 40% leap in XRP’s valuation within just 24 hours.
Trump‘s statements notably catalyzed a significant upswing in trading activity. Prominent cryptocurrency analyst Ali Martinez drew attention to this surge on Wednesday
He stated in a tweet that “over $5.37 billion worth of XRP exchanged hands in the past 24 hours,” highlighting the escalated dynamism within the XRP market.
In parallel, Martinez highlighted on-chain data from Santiment indicating substantial accumulation by large-scale investors.
These “whales” reportedly amassed nearly 1 billion XRP during the same timeframe, signaling heightened conviction and interest from institutional participants in the cryptocurrency.
Beyond the accumulation by large holders, on-chain data points towards a dramatic expansion in user adoption.
Growing Transactions and User Adoption Fuel XRP’s Momentum
Martinez pointed out on Wednesday a remarkable surge in active XRP wallets, noting, “The count of active XRP addresses has exploded by an astonishing 620% over the last week, leaping from 74,589 to 462,650.”
This surge in activity builds on Santiment data from February 20th, which had already revealed that the number of wallets holding over 100,000 XRP had grown by an additional 261 in the preceding ten weeks.
This prior data already indicated a growing trend of accumulation, particularly amongst high-net-worth individuals.
Further underlining the broadening adoption of XRP, the total number of accounts on the XRP Ledger has grown by roughly 24% since January 2024.
This increase suggests wider utilization of XRP for various financial applications, including its well-known efficiency in facilitating cross-border payments.
Multiple elements appear to be driving XRP’s current rally. These include growing optimism regarding potentially more favorable cryptocurrency regulations and broader policy shifts within the United States.
The ongoing legal dispute between Ripple, the company behind XRP, and the Securities and Exchange Commission (SEC) continues to be a central point of attention.
However, market sentiment has increasingly leaned towards a positive outlook for XRP in this legal battle.
Furthermore, industry commentators suggest that recently forged strategic alliances, the launch of Ripple’s own stablecoin RLUSD, and increasing speculation surrounding the potential introduction of a spot XRP exchange-traded fund are all acting as catalysts for XRP’s recent price appreciation.
Ripple President Monica Long recently voiced confidence about ETF approval, stating in an interview her anticipation of regulatory authorization happening “soon,” particularly if the Trump administration fosters a more transparent regulatory landscape.
Also Read: Crypto Market Volatility and Movements in XRP, ETH, and ADA
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