Why is Ripple (XRP) price going up today?

TL;DR

XRP rose 6% to $0.57 after the launch of Grayscale XRP Trust. Analysts are optimistic about a possible bull run, fueled by new confidence and legal developments. Beating BTC and ETH

The cryptocurrency market has seen little to no volatility in the past 24 hours, with Bitcoin (BTC) trading around $58,000 and Ethereum (ETH) above $3,300. Other top-tier assets, such as Binance Coin (BNB) and Solana (SOL), are also moving sideways, but there is one exception, and its name is XRP.

The price of Ripple’s native token is worth approximately $0.57 (according to GoinGecko data), representing a daily increase of 6%. It remains the seventh largest cryptocurrency; however, its market capitalization has increased by over $2 billion in a matter of a day, currently pegged at over $32 billion.

XRP Price, Source: CoinGecko

The main factor that triggered XRP’s resurgence was Grayscale’s launch of a dedicated Ripple Trust. The product allows investors to gain direct exposure to cryptocurrency without the need to directly purchase, store or manage it.

“We believe Grayscale XRP Trust gives investors exposure to a protocol with an important real-world use case. By facilitating cross-border payments that take seconds to complete, XRP has the potential to transform legacy financial infrastructure,” commented Rayhaneh Sharif-Askary, Head of Product and Research at Grayscale.

The world’s largest digital asset manager offers several similar products with other leading cryptocurrencies as underlying assets. Examples are Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), Grayscale Litecoin Trust (LTCN) and more.

More inbound rally?

The aforementioned development generated a lot of excitement in the XRP community, with numerous analysts claiming that this could be the starting point for a bull run.

User X, CryptoMutant, believes that the launch of the investment vehicle has brought back the old goals, envisioning $1 as a feasible goal.

Crypto Assets Guy was also optimistic, arguing that Grayscale’s move could be “paving the way” for a potential XRP ETF. They also believe that RLUSD (Ripple’s next stablecoin pegged to the US dollar) will “bring massive liquidity”, while Ripple vs. SEC is “finally over”.

It’s worth noting that the lawsuit hit a major milestone in August when Judge Torres ordered Ripple to pay a $125 million fine (a 94% deduction from the SEC’s initial request of $2,000 million dollars) for violating certain securities laws. However, the parties have until early October to appeal the decision, as the regulator looks more likely to do so.

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