Here are Key Factors That May Take XRP Above $100

Several factors, such as the launch of XRP ETFs, greater institutional demand, and a thriving regulatory environment, could help push XRP to three digits.

XRP continues to battle the bears around the $2.45 resistance despite recent bullish developments. This is largely due to the broader market uncertainty, as Bitcoin (BTC) remains tethered at $87K. Nonetheless, analysts expect the recovery run to push XRP to new all-time highs.

Interestingly, some market commentators like Armando Pantoja have predicted a possible rally to $100. While such a substantial rise may seem ambitious, a combination of key factors could potentially drive XRP toward this target in the coming years.

Resolution of the SEC Lawsuit

The legal case between the U.S. Securities and Exchange Commission (SEC) and Ripple has been a major overhang for XRP. The SEC had accused Ripple of conducting an unregistered securities offering through its sale of XRP. 

However, recent developments indicate that the SEC has officially dropped its case against Ripple. CEO Brad Garlinghouse confirmed this resolution, marking a pivotal victory for the company and the broader cryptocurrency industry. 

This outcome will remove any remaining legal uncertainties surrounding XRP once Ripple accepts the terms and officially ends the case. With this lawsuit out of the way, institutional investors could be bold enough to handle XRP, contributing to demand.

Launch of XRP ETFs

The approval and launch of XRP exchange-traded funds (ETFs) could boost the XRP’s accessibility to institutional and retail investors, especially as the Ripple lawsuit comes to a definite close.

Several firms, including Grayscale, WisdomTree, 21Shares, and Canary Capital, have filed applications with the SEC to introduce XRP ETFs. The SEC has acknowledged filings for some of these products.

These ETFs seek to provide investors with regulated and straightforward exposure to XRP without the complexities of directly managing the asset. The approval of the products will likely increase demand for XRP, boost liquidity, and contribute to more stable price discovery mechanisms. 

Ripple’s Escrow Strategy

Following President Donald Trump’s confirmation that XRP would secure inclusion in the U.S. government’s digital asset stockpile, speculations have emerged around Ripple donating a portion of its escrow to bolster this stockpile.

Notably, Ripple currently holds 37.1 billion XRP in escrow. If the firm donates a substantial portion of this escrowed XRP to the U.S. government’s digital asset reserves, it could serve multiple purposes. 

Such a move would show Ripple’s commitment to supporting national interests and potentially lead to stronger regulatory relationships. The subsequent demand from this move would exert upward pressure on XRP’s price over time.

Institutional Adoption Driven by Regulatory Clarity

The conclusion of the SEC lawsuit and the anticipated approval of XRP ETFs contribute to a cleaner regulatory environment for XRP. This clarity will likely encourage institutional investors to engage more confidently with XRP, integrating it into various financial products and services. 

Increased institutional adoption can lead to higher transaction volumes, greater liquidity, and market stability for XRP. Notably, these are factors that could contribute to larger price growth.

Can XRP Reach $100?

In the short term, XRP price growth remains largely subdued, currently trading at $2.45. At the current price, a run to $100 would demand a massive increase of about 3,932%. 

Achieving this price point would elevate XRP’s market cap to around $5.8 trillion, surpassing the current total cryptocurrency market cap of $2.81 trillion. Considering this resulting valuation, skeptics argue that reaching a $100 valuation for XRP is unrealistic. 

However, the crypto market has witnessed unprecedented growth in the past. For instance, Bitcoin, which traded for mere pennies over a decade ago, has soared to over $84,000, achieving a market cap exceeding $1 trillion. This confirms that under the right conditions, XRP can reach $100 in the coming years.