Why Ripple's XRP Coin Remains Popular Among Regular Traders

Real Vision CEO Raoul Pal explained this observation in an X post on January 2, illustrating why XRP is still favored by newcomers in the crypto space.

Despite the crypto space undergoing major changes, Ripple’s XRP coin continues to be popular among regular traders.

In an X post on January 2, Real Vision CEO Raoul Pal elaborated on this observation, explaining why XRP remains the preferred choice for newcomers entering the crypto space.

Despite the lengthy court battles, XRP has managed to maintain its position as the third-largest cryptocurrency by market capitalization.

According to CoinMarketCap data, XRP is currently valued at $180 billion and had a 24-hour trading volume of $18 billion as of January 3.

Pal’s analysis highlights one unique aspect of XRP — its ability to connect with “normies,” or the average retail investors who are just entering the volatile crypto space.

Raoul Pal's Perspective on XRP's Unique AppealIn his recent critique of the growing trend of AI agents in crypto, Pal compared the hype around AI agents to XRP's consistent appeal.

He countered the AI narrative, calling it a short-lived hype for thrill-seeking market participants, stating, “They’ll come in and buy XRP anyway.”Pal instead attributed XRP's enduring popularity to its simplicity, affordability, and association with Ripple, a well-known payments company.

According to industry analysis, XRP's low transaction fees and user-friendly approach make it an attractive entry point for those new to crypto.

A “Cult-Like” FollowingXRP's mass appeal can also be attributed to its dedicated user base. In an August 2024 video, Pal described XRP's community as having a “cult-like” following, attracted by the token's reliability and role in cross-border payments.

This support remained strong even during XRP's legal battle with the U.S. Securities and Exchange Commission (SEC), which resulted in major exchanges like Coinbase temporarily delisting the token.

Despite this setback, XRP staged an impressive comeback.

Between November and December 2024, XRP soared 475%, outperforming most other cryptocurrencies. The rally followed Donald Trump's election victory, with market participants speculating on regulatory clarity for XRP under a new administration.

AI Agents vs. XRP: Market SentimentWhile XRP benefits from its simplicity and proven utility, the introduction of AI agents has brought a new layer of complexity to the crypto space.

These unsupervised software use artificial intelligence to perform blockchain operations such as portfolio management and tokenized trade.

However, Pal expressed skepticism about their sustainability, calling it a “thrill-seeker's game.”

The lack of logical barriers and scarcity of applications also raised questions about the long-term viability of AI agents.

In contrast, XRP continues to provide value-adding services and should not be only considered a speculative investment.

The recent performance shows why XRP remains relevant in the portfolio of retail investors. While external trends like AI agents may capture the public's attention temporarily, XRP is the only digital currency that has consistently demonstrated stable growth and expanded its recognition among traders.