It has been a terrific year for Ripple (XRP +1.64%). Since 2025 began, XRP has increased in value by more than 40%. This follows a spectacular 2024 performance that saw this crypto token nearly triple in value.
There's one reason to believe that even more gains are on the way.
CRYPTO: XRP
Key Data Points
Mass adoption may finally be on the way
I have been skeptical of Ripple's long-term vision for years. From a technological standpoint, Ripple certainly makes sense as a use case. From a cost, speed, and transparency standpoint, Ripple's network is superior to most financial transfer protocols like SWIFT. The upside potential, too, has always been clear. The total value of the world's GDP -- roughly $111 trillion -- gets transacted over the SWIFT financial messaging network every three days. And despite a rapidly rising token price, Ripple's total market cap remains at just $300 billion.
The issue hasn't been fit or upside potential, but rather real-world adoption. The SWIFT network has been in operation for roughly 50 years and has been adopted by nearly every major financial institution on the planet. Ripple, meanwhile, was founded in 2012, after which it faced several major lawsuits and regulatory investigations. Getting centuries-old financial institutions to adopt a novel, crypto-backed network for global monetary transactions has been an uphill battle. But the next few years could change everything.
On Aug. 8, the Securities and Exchange Commission (SEC) formally ended its years-long investigation. The overall regulatory environment, meanwhile -- especially in the U.S. -- has improved considerably over the last 12 months. Lawmakers in the U.S. are looking to clarify and expand crypto regulations not to stymie the industry, but to reduce roadblocks and uncertainty in order to speed adoption and innovation.
For years, Ripple's Achilles' heel has been its inability to get buy-in from the traditional finance sector. An improved reputation and regulatory environment could finally be what the project needs to see real traction in its network's adoption.
