Ripple’s XRP started off 2025 in high gear as it carried on 2024’s momentum to lead the top 50 assets in YTD gains. XRP broke above the $3 milestone for the first time since 2018 after gaining 10% on January 16th.
Fortune reported that XRP, the third-largest crypto asset, was approaching a new all-time high. Patrick Liou, principal of institutional sales at crypto exchange Gemini, claimed that the recent XRP rally was rooted in a widespread expectation that President-elect Trump would deliver on his pre-elections pro-crypto promises. He wished to see the Trump administration’s support of a crypto-friendly regulatory framework.
After breaking the $3 mark for the first time in years, XRP soared to $3.35 on Thursday, placing the asset within reach of its ATH. According to Fortune, the crypto industry was unlike the stock market since there was no consensus on what the ATH was. For instance, since assets’ prices were determined by demand and supply on different exchanges, Binance placed XRP’s ATH at $3.84 while Coingecko placed it at $3.40.
Liou speculates on the catalysts driving Ripple’s XRP prices
Gemini’s Liou believes that the current XRP rally was driven by a number of catalysts, including the fact that investors were looking forward to the potential dropping of the U.S. SEC’s lawsuit against Ripple and XRP under Trump.
David Duong, head of institutional research at Coinbase, said a lot of people were ‘reading the tea leaves’ on what would happen in the new regulatory environment. He added that people were looking at Ripple Labs and some of Ripple’s representatives and were saying that they appeared to be getting closer to the new administration.
Monica Long, Ripple’s president, told Bloomberg on January 7th that speculations of XRP ETFs being approved by the U.S. SEC in the near future helped boost confidence in XRP’s market performance.
Liou also said Trump’s ‘openness’ to an America-first strategic reserve that would prioritize digital assets created in the U.S., like the USD Coin, Ripple’s XRP, and Solana, was another key catalyst. A strategic XRP reserve would legitimize the asset as a store of value and boost its price. Fortune was, however, yet to verify these rumours based on anonymous sources.
Brad Garlinghouse, Ripple’s CEO, has also met Trump at least once, suggesting that Ripple will have a direct line of communication with and, therefore, influence on the incoming administration. This has further sparked interest in Ripple’s XRP.
Ripple’s 2024 election gamble seems to have paid off big time
Ripple’s total XRP holdings have skyrocketed in value, adding nearly 125 billion since last year’s U.S. elections in November. XRP, which was trading at $0.50 on the eve of the U.S. elections, has since exploded to reach its ATH levels. Ripple’s reported XRP stash is now worth $146.48 billion, up from $21 billion in November 2024.
The remarkable surge reveals the degree to which American crypto firms will benefit from Trump’s reelection. The XRP rally also offers an explanation as to why Ripple enthusiastically threw its support behind Trump’s presidential bid.
XRP’s turnaround can partly be attributed to Ripple’s aggressive campaign plans to influence the 2024 November elections and change crypto policy.
Last year, Ripple, together with Andreessen Horowitz and Coinbase, led a $300 million super PAC in the hopes of reversing the hostile crypto regulatory environment. The initiative turned the crypto industry into one of Washington’s key power centers and seemingly flipped XRP’s fortunes. The successful campaign saw nearly all candidates supported by crypto super PACs win their respective seats. The incoming administration looks set to change the tune of XRP’s once-questioned legality.
Crypto firms have lined up to gain favour from the incoming government in the weeks leading up to Trump’s inauguration. The crypto firms have particularly donated millions towards Trump’s inauguration fund. Ripple shelled out $5 million, giving more than any other donor.
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