3 Reasons Why XRP Deserves a Spot in Your Portfolio

XRP is already a top altcoin and one of the most revolutionary digital assets with massive long-term potential. Here are three more reasons why XRP deserves a spot in your portfolio.

XRP is already a top altcoin and one of the most revolutionary digital assets with massive long-term potential. But if you need more reasons to add it to your portfolio, here are three more.

The last eight months have been great for XRP. For starters, they helped the top altcoin confirm that it is still worth buying when it rallied by more than 450% and even hit a new multi-year high of around $3.44.

The president announced its inclusion into the US strategic crypto reserve, and the SEC explained why it is a worthy addition after dropping the appeal case against Ripple Labs.

All these explain the bullish optimism with which investors expect XRP to rally to a new all-time high.

But if you’re not buying into the hype and prefer sticking with the facts, we’ve got you covered. Below, we’ll explain three more reasons why you should buy and hold XRP.

Institutional demand has been increasing against a shrinking supply

The number of banks and financial institutions partnering with Ripple to leverage their Ripple Ledger and network has been rising steadily.

And with the SEC case won and clearer crypto regulations, we expect institutional demand for Ripple technologies to explode.

With the growing activity on the network comes higher demand for XRP. And with Ripple committed to burning most of the XRP tokens in circulation, you can expect the forces of demand and supply to thrust the coin’s price to unimaginable heights.

However, if you’re looking for an optimistic outlook on the matter, we’ll be keeping an eye on the price action to confirm any potential price rallies.

Upcoming ETF and regulatory clarity will catapult XRP price to new heights

There is growing investor confidence that the US SEC will approve XRP ETFs before year-end. In fact, as much as 77% of bettors on Polymarkets are confident that we will be trading XRP ETFs by December 31, 2025.

The SEC chair has also promised to prioritize coming up with clearer rules for digital assets and the larger crypto industry.

Such a move from an already crypto-friendly agency and government administration would embolden more retail and institutional investors to buy XRPs, effectively spurring explosive value gains for the top coin.

But if you’re skeptical about the chances of such an event playing out, we’ll be following any news on new ETF applications closely.

XRP is yet to price in most of the network developments

A lot has happened in the Ripple network over the last five years. It has partnered with banks and financial institutions. Central banks and governments have also leveraged the Ripple ledger to create and launch their own CBDCs.

And most recently, Ripple introduced Automated Market Makers (AMMs) on its platform.

None of these developments have been priced and are expected to trigger massive gains for XRP. But to confirm that, we’ll be examining the technical analysis charts closely for any signs of a breakout.