Ripple Labs introduced the blockchain network XRP Ledger, which has reached a significant milestone. According to blockchain data analysis platform Santiment, there are 5.02 million wallets holding XRP in the ecosystem, reflecting the increasing interest in XRP price over the past few years. So, what is expected for Ripple? Let’s examine together.
Significant Development in XRP Ledger
XRP, a leading cryptocurrency in the crypto asset market, has been frequently in the news recently due to discussions surrounding a potential spot exchange-traded fund and analysts’ bullish predictions.
Santiment reported in a post on January 27 that the XRP Ledger currently has over 5.02 million individual wallets holding more than 0 XRP. This figure represents the highest number of wallets in the last decade and indicates an increase in XRP’s adoption by investors.
Data shared by Santiment reveals that the number of XRP holders has doubled since February 10, 2021, and tripled since May 29, 2019. This significant increase in XRP adoption demonstrates the cryptocurrency’s growing popularity among investors and enthusiasts.
The Process Regarding the SEC Lawsuit
Various factors could potentially contribute to further adoption of the XRP Ledger. One of these significant factors is the ongoing legal battle between Ripple, the company behind XRP, and the United States Securities and Exchange Commission (SEC) potentially turning in Ripple’s favor.
A recent YouTube video by the crypto analysis channel Discover Crypto described the SEC and Ripple case as a significant uncertainty process that has been fueling concern among investors.
The channel host suggested that even if Ripple were to be fined as part of a settlement, it would likely lead to a significant increase in XRP’s price and adoption. The conclusion of this three-year legal saga could provide the clarity and confidence needed to attract more participants to the XRP ecosystem.
Claims of a Spot XRP ETF
Another potential factor for increased activity on the XRP Ledger could be the launch of a spot exchange-traded fund for XRP. Following the SEC’s approval of Bitcoin spot ETF applications in January, speculations emerged for similar investment products for other cryptocurrencies, including XRP.
However, the possibility of a spot XRP ETF product remains uncertain as certain conditions need to be met. Bloomberg analyst James Seyffart noted that key prerequisites include resolving the SEC and Ripple lawsuit and launching a regulated XRP ETF product on a trading platform. Nonetheless, if realized, a spot XRP ETF product would indicate mainstream adoption of the cryptocurrency and could potentially lead to an influx of investors to the XRP Ledger.
