Renewed Interest in Ripple and XRP in 2024: Why Investor Confidence in the Ecosystem Has Risen Significantly This Year

Ripple vs. SEC Battle Expected to End Soon, XRP ETFs Could Enter the US Market, XRP Reaches a 7-Year High, RLUSD Launches, XRP Joins the Meme Coin Party

Despite the ongoing legal battle with the US Securities and Exchange Commission (SEC), investor confidence in the Ripple ecosystem has surged this year. Here's why there's been a renewed interest in Ripple and XRP in 2024.

Ripple vs. SEC Battle Nearing an End

2024 marks the fourth year of Ripple's legal battle with the US SEC. In 2020, the American regulator filed a hefty $1.2 billion lawsuit against the XRP issuer, accusing the firm of selling unregistered securities.

While a court ruled last year that Ripple's sales of XRP tokens to retail investors did not violate securities laws, the saga continued in 2024, with the US SEC filing an appeal in October to contest the ruling. That same month, Ripple filed a cross-appeal. The company's Chief Legal Officer, Stuart Alderoty, expressed optimism that the court would once again rule in their favor.

Given that the SEC is set to get a pro-crypto Chair next year, Alderoty noted that there's a chance the agency might drop its charges against the firm.

XRP ETFs Set to Enter the US Market

This year, investors poured billions of dollars into Bitcoin and Ethereum ETFs following their approval by the SEC. Now, Ripple boss Brad Garlinghouse believes that an XRP ETF is on the horizon.

Several US asset managers, including Bitwise, 21Shares, and WisdomTree, have already filed for such an ETF in a bid to give investors exposure to the XRP ecosystem without holding the token itself.

If XRP ETFs mirror the success of Bitcoin ETFs, then XRP could break above its all-time high to enter a price discovery zone, according to analysts.

XRP Hits a 7-Year High

XRP has been one of the top performers in 2024, rallying 235% to hit $2.89 for the first time in seven years. Notably, it briefly flipped the USDT stablecoin to become the third-largest crypto asset by market capitalization.

It's interesting to note that XRP peaked at $1.91 during the previous bull run, which is 43% below its all-time high of $3.38 set in January 2018. Some analysts are now bullish that the positive developments around the Ripple ecosystem could help XRP record a new all-time high in the coming months.

RLUSD Stablecoin Launches

Ripple's long-awaited stablecoin, RLUSD, finally hit the US markets on December 17th. Its launch comes at a time when the total market cap of stablecoins, or cryptocurrencies pegged to fiat currencies like the Euro and USD, is on the rise. According to data from DefiLlama, the market cap of stablecoins has increased by 55% this year, moving from $129 billion at the start of the year to $203 billion as of this writing.

So, what's the purpose of RLUSD? According to Ripple, its stablecoin, which currently runs on the XRP Ledger and Ethereum, will be used to power cross-border payment solutions.

Crypto users who wish to purchase RLUSD can do so on MoonPay, Archax, Bitso, CoinMENA, and Uphold. More options will be made available in 2025, according to a recent statement from Ripple.

Moreover, to maintain transparency, the RLUSD issuer will publish third-party audited proof of reserves on a monthly basis. This will help the public understand the status of the assets backing the stablecoin.

XRP Joins the Meme Coin Party

Meme coins have been the hottest cryptocurrencies in 2024, with Solana hosting the main party thanks to its PumpFun token launchpad. The XRP meme coin ecosystem sprung into action a few weeks ago after token creators noticed the growing investor interest.

Numerous meme coins have already been launched, allowing some degens to legally make thousands of dollars from almost nothing. For example, a trader bought the ARMY meme coin in November for $470 and went on to receive over $400,000 in profits.

In a bid to get more traders to join the XRP Ledger, validators agreed to lower the reserve fees (funds required to maintain a user account). This move is already paying off, with over 100,000 new accounts being created since mid-November, according to data from XRPScan.

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