“5 Factors That Could Send the Price of XRP Token Soaring,” a widely followed XRP community pundit, has shared insights into what could cause the price of XRP to soar.

Rather than relying on mere speculation and hype, the pundit believes that XRP's long-term success hinges on five key pillars.

A widely followed XRP community pundit, known as ‘All Things XRP,’ has shared insights into what could cause the price of XRP to surge.

Instead of relying on mere speculation and hype, the pundit believes that XRP’s long-term success will be determined by five key pillars. If these factors align, XRP could potentially experience substantial growth.

Adoption: Ripple’s ODL Powers Real-World Use

The first pillar is adoption. Ripple Payments (formerly On-Demand Liquidity) is already facilitating cross-border transactions for numerous financial institutions around the globe.

As more banks integrate Ripple’s technology, XRP’s real-world utility will continue to grow. With increasing global adoption, demand for XRP as a liquidity tool could expand, providing a solid foundation for long-term value.

Regulatory Clarity: U.S. Green Light Would Spark Investor Confidence

The second pillar is regulatory clarity, particularly in the United States. A clear regulatory framework from U.S. authorities would likely boost investor confidence in XRP.

Notably, the legal uncertainty surrounding Ripple has long been a roadblock for institutional investors. Although XRP secured some regulatory clarity from a federal court two years ago, pundits believe the persistent lawsuit continues to hinder its price performance.

However, the situation is shifting favorably, with Ripple’s legal battle against the SEC nearing resolution through ongoing settlement talks.

Additionally, the Trump administration is making efforts to establish clear operational rules for U.S.-based crypto businesses. These factors could further reassure the market and trigger a surge in institutional and retail investment.

Tech Innovation: Upgrades to the XRP Ledger Drive Utility

Another important factor is technological innovation. Ripple and the broader developer community continue to enhance the XRP Ledger with upgrades that improve scalability, speed, and security.

Recent milestones include the introduction of the RLUSD stablecoin, automated market maker (AMM) functionality, and ongoing efforts to implement staking. These improvements aim to make XRP more efficient and bolster its utility across various sectors, including finance and beyond.

Market Sentiment: Bitcoin’s Influence on XRP’s Price Movement

All Things XRP also highlighted market sentiment and how Bitcoin often dictates XRP’s price movement.

Historically, XRP has risen when Bitcoin rallies. Like other crypto assets, favorable BTC price movements inject optimism into the broader market, benefiting other promising tokens like XRP.

While BTC’s influence on XRP remains a key factor, some hope XRP will eventually decouple from Bitcoin.

Supply Pressure: Scarcity as a Bullish Factor

Finally, the commentator emphasized the role of supply dynamics in XRP’s price movement. Notably, XRP creators strategically managed XRP’s supply to create scarcity and prevent market flooding.

Of XRP’s total 100 billion-token supply, only around 58 billion tokens are readily available for trading. While Ripple releases new tokens monthly, most of the 1 billion XRP unlocks return to escrow.

Moreover, each transaction on the XRPL burns a small amount of XRP. While the burn volume is negligible compared to the total supply, proponents often cite this deflationary mechanism as a bullish factor.

They believe reduced market availability will increase scarcity, which could drive up demand and price.

All Things XRP concludes that while hype may fuel short-term excitement, XRP’s long-term success will depend on these five core pillars.