- XRP hit a new all-time high after seven years, driven by regulatory relief and the launch of a leveraged ETF.
- However, concerns remain about its volatility, centralized control, and long-term value.
After years in legal limbo, XRP investors are finally seeing a long-awaited reward. On July 18, XRP reached a new all-time high, marking a dramatic rebound after losing over 90% of its value following its 2018 peak. This resurgence follows a friendlier regulatory environment under President Donald Trump’s administration and a key legal victory for Ripple, the company behind XRP.
A Regulatory Breakthrough Fuels a Price Surge
Ripple’s major breakthrough came after the SEC decided to settle its lawsuit and withdrew its appeal of a prior court decision that partially favored Ripple. The appointment of crypto-friendly Paul Atkins to lead the SEC has also shifted the agency’s stance, leading to halted or withdrawn lawsuits against major crypto platforms. Investors have responded with renewed enthusiasm, driving XRP’s price higher and re-igniting interest in its use case.
The ETF Catalyst: Fueling Optimism
What really set XRP’s ablaze was the July 18 approval of the ProShares Ultra XRP ETF, a leveraged futures-based fund that sparked fresh excitement. While the ETF doesn’t hold XRP directly, it signals institutional interest and raises hopes for a spot ETF in the future—something that has historically boosted Bitcoin’s appeal.
ETFs could attract new investment flows into XRP, but the real question is whether that interest is sustainable. Bitcoin’s ETF success is largely due to its status as a decentralized store of value. XRP, in contrast, is controlled by Ripple, making it vulnerable to regulatory decisions and corporate actions.
Can XRP Maintain the Hype?
Despite its benefits for cross-border transactions—costing a fraction of a cent and settling instantly—XRP isn’t without its flaws. Its volatility makes it risky for banks looking for stable settlement methods. Even worse, Ripple’s payments network can function without XRP entirely, undercutting one of its primary use cases.
Speculative interest and regulatory tailwinds may continue to drive price spikes, but the underlying value proposition remains uncertain. While XRP’s latest rally is noteworthy, its long-term sustainability is far from guaranteed. Investors should be cautious and prepare for price swings in the months ahead.
