- XRP surged over 20% in a week and surpassed BNB, becoming the third-largest cryptocurrency by market capitalization.
- Regulatory clarity after Ripple’s SEC case, lighter positioning, and steady fund inflows fueled XRP’s recent gains.
- XRP’s role as a cross-border settlement asset is attracting banks and institutions seeking faster currency transfers.
XRP has emerged as a top performer in the cryptocurrency market, rising over 20% in the past week, according to CNBC. The token, tied to Ripple, overtook Binance Coin (BNB) to become the third-largest cryptocurrency by market capitalization. XRP’s growth comes amid increasing use in cross-border payments and institutional adoption.
XRP’s Role in Cross-Border Payments
XRP functions as a bridge asset in financial transactions, allowing fast settlement between currencies like dollars and yen. Ripple designed the token to reduce transfer times from days to seconds, unlike Bitcoin, which focuses on digital gold.
McDonald highlighted that XRP operates as a settlement layer, differentiating it from stablecoins, which represent tokenized dollars. This design attracts banks and payment providers seeking efficient currency transfers.
Drivers Behind Recent XRP Gains
According to CNBC, three main factors have contributed to XRP’s recent momentum. First, regulatory uncertainty ended when Ripple completed its SEC case in August. Second, XRP offers a less crowded trade compared with Bitcoin and Ether. Third, XRP-focused funds continued to see inflows despite broader market dips in Q4.
Investors are increasingly viewing XRP as an alternative during declines in Bitcoin and Ethereum. Accumulation grew quietly as Bitcoin ETF flows fell, suggesting continued interest in XRP. CNBC also noted that upcoming MSCI index decisions could influence asset flows in the market. The combination of regulatory clarity, market positioning, and consistent inflows has contributed to XRP’s rise.
XRP Market Context and Outlook
Despite broader market pullbacks, XRP’s adoption in cross-border payment infrastructure and its lower trading base has encouraged accumulation. Its performance highlights interest in alternative cryptocurrencies beyond traditional large-cap coins. Ripple’s network and XRP token continue to be positioned as tools for value transfer between currencies, particularly for institutional clients seeking speed and efficiency.
