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ZyCrypto 2025-05-07 17:45:33

Amid Push for $10 XRP Price Explosion, Bitwise Breaks Down What Really Powers Ripple’s XRP Value

Bitwise Asset Management, one of the largest crypto asset managers in the U.S., has released a comprehensive report demystifying what drives the value of XRP. Authored by Chief Investment Officer Matt Hougan and Research Analyst Ayush Tripathi, the analysis offered a compelling counter-narrative to the often-simplistic view that XRP’s fate is tied solely to Ripple’s legal battles or corporate performance. “XRP is not equity in Ripple,” the report stated, addressing a long-standing misconception that has lingered in the crypto community. As per the authors, XRP should instead be viewed through a broader lens that considers utility, liquidity, and evolving regulatory clarity as its primary value drivers. According to the report, XRP’s principal strength lies in its design as a bridge currency for cross-border payments. The token was built to facilitate high-speed, low-cost international transfers, settling transactions in 3–5 seconds with minimal fees. This has made it a standout alternative to legacy systems like SWIFT, which are slower, costlier, and not operational around the clock. “XRP is one of the fastest, cheapest, and most scalable assets available today,” Bitwise emphasized. That said, Ripple’s legal saga with the U.S. Securities and Exchange Commission (SEC) has cast a shadow over XRP since 2020. However, the report argued that recent court developments may have worked in XRP’s favor. Notably, in July 2023, a U.S. District Court ruled that secondary market sales of XRP did not constitute securities offerings, providing long-awaited regulatory clarity. As per Bitwise, “ XRP is now one of only a few digital assets in the U.S. with regulatory clarity,” a distinction that could appeal to institutions seeking compliant crypto exposure. Moreover, despite regulatory uncertainty, XRP’s liquidity profile has remained robust. Bitwise pointed out that XRP is now the third most liquid crypto asset globally, trailing only Bitcoin and Ethereum. This depth of liquidity is significant for institutional players and use cases requiring high transaction throughput. “That means tighter spreads, lower costs, and more reliable execution,” the report noted. In addition to these structural advantages, Ripple has made strategic moves to strengthen XRP’s ecosystem. In May 2023, the company acquired Swiss custody firm Metaco for $250 million, signaling a push into institutional crypto infrastructure. While XRP holders do not benefit from Ripple’s equity or profits, such acquisitions build long-term trust and utility around the XRP ledger. “XRP sits at the intersection of utility, liquidity, and regulatory clarity.” Tripathi noted. According to him, these intersecting strengths, according to the report, may provide XRP with a unique edge in the next phase of crypto adoption as $10 XRP price gets envisioned. At press time, XRP was trading at $2.11, reflecting a 0.52% surge in the past 24 hours.

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