XRP Overview: What makes it different?

XRP is not released by Ripple, but designed and developed by Jed McCaleb, Arthur Britto, and David Schwartz in 2012. It aims to optimize the global payment system, especially cross-border payments. Unlike Bitcoin, XRP relies on the XRP Ledger (XRPL), providing a fast, efficient, and cost-effective way of transactions. Ripple (formerly OpenCoin) was subsequently established and promoted the development of the XRP Ledger, cooperating with global financial institutions to improve cross-border payment processes using its technology.

XRP's biggest feature is its transaction speed and low transaction costs, with a transaction confirmation time of only a few seconds and extremely low fees. Ripple's goal is to simplify global payment processes through XRP, reducing the high costs and slow transaction speeds faced by traditional banks.

Image:https://ripple.com/xrp/

Trump's cryptocurrency strategic reserve statement

On March 2, 2025, U.S. President Trump issued a statement through the Truth Social platform, stating that he will promote a strategic reserve of cryptocurrencies including XRP, SOL, ADA through a digital asset executive order. He also emphasized: "I will ensure that the United States becomes the cryptocurrency capital of the world. We are making America great again!"

This statement immediately attracted widespread market attention, causing a rapid rise in the price of XRP. Trump explicitly stated that BTC and ETH will also become core reserves, combined with his support for XRP, boosting investors' confidence in the token.

After the announcement, the price of XRP quickly soared, becoming the focus of the market. However, Trump subsequently added that Bitcoin and Ethereum will also be part of the reserve, further driving the overall rebound of the entire cryptocurrency market. The price of XRP rose to around $2.5.

The market performance of XRP and future price predictions

The market volatility in March 2025 is closely related to Trump's policy announcements. Despite the short-term surge in XRP and other cryptocurrencies after Trump's statement, the market quickly entered a phase of adjustment due to concerns about the US economic recession and the Fed's policies. On March 5th, the price of BTC rose to a high of $92,810.64, but after March 6th, influenced by macroeconomic factors, the prices of BTC and XRP subsequently corrected.

Currently, the price of XRP is still strongly influenced by the US economy, Trump's policies, and the global sentiment of the cryptocurrency market. Nevertheless, XRP's technical advantages and extensive cooperation between Ripple and financial institutions still give it significant potential for a rise in the future. If market sentiment improves, especially driven by Trump's policies, XRP may usher in a new wave of upward momentum.

Image:https://www.gate.io/trade/XRP\_USDT

Key factors affecting XRP price

The trend of XRP price is influenced by multiple factors, here are several main influencing factors:

1. Macroeconomic environment and Federal Reserve policy
   Recently, concerns about the decline of the US economy have intensified, leading to a sharp drop in the three major US stock indexes. The market is worried that the Fed's interest rate policy may further slow down the economy, making the sentiment in the crypto market more cautious. However, with the soft non-farm payroll data and the increasing expectation of interest rate cuts, investors' sentiment towards risk assets may change, which will have an impact on XRP.

2. Challenges of law and regulation
   XRP is still facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) regarding its security attributes. If the lawsuit results are unfavorable to Ripple, it may have a significant negative impact on the price of XRP. However, Trump's remarks also indicate that the U.S. government may seek more support for Ripple in advancing its cryptocurrency reserve strategy.

3. Collaboration between Ripple and financial institutions
   Ripple's partners are spread across global financial institutions, such as Santander and American Express, which makes the future application of XRP in actual payments promising. If Ripple continues to expand its cooperation with financial institutions, the market demand for XRP will increase significantly.

XRP price forecast

Using the prophet model, backtesting data for nearly 300 days, it is predicted that the XRP price may show a certain downward trend along with the overall market, possibly falling below $2 (This model's predicted data is not for any investment reference but only for price prediction. Please trade cautiously and be aware of the risks).

Conclusion

Trump's statement on the strategic reserve of digital assets has brought a short-term rise to XRP, but the market is still influenced by macroeconomic factors, and the price trend is full of uncertainty. Nevertheless, with its unique technological advantages and global cooperation relationships with Ripple, XRP still has considerable investment potential. If the US government further promotes the implementation of cryptocurrency policies, the future rise of XRP may be more significant. Investors should make cautious decisions based on market trends and their own risk tolerance to capture potential investment opportunities.