Ripple’s XRP Gains Renewed Attention This Month

Despite a modest 2% increase following the launch of the first U.S.-listed XRP futures ETF, some analysts believe XRP remains undervalued

Ripple’s XRP has been a cryptocurrency subject to mixed attention in recent times, with its price currently at $2.37 following a 2% rise after the launch of the first U.S.-listed XRP futures ETF. While this attention is noteworthy, some analysts believe that XRP remains "massively undervalued" despite its stability amidst broader market fluctuations.

Key Developments Influencing XRP

The debut of the XRP futures ETF on Nasdaq is a significant milestone, as it brings institutional interest and trading volume to XRP. This ETF, managed by Volatility Shares under the ticker XRPI, allocates at least 80% of its assets to XRP-linked financial instruments.

Moreover, Ripple has introduced RLUSD, a U.S. dollar-pegged stablecoin, on both the XRP Ledger and Ethereum networks. This stablecoin, backed 1:1 by cash reserves and short-term cash equivalents, is designed to enhance liquidity and diversify the usage of the XRP Ledger.

In a recent development, Ripple burned 4 million RLUSD tokens to manage the stablecoin’s supply and stabilize its value. This action, positioning Ripple as a "market maker," may indirectly affect XRP’s value by influencing market dynamics.

Analyst XRP Perspectives

Some analysts view the current XRP price as a "generational entry point," comparing it to Bitcoin’s early days when it traded at $0.05. With regulatory clarity, new financial products like the XRP ETF, and strategic initiatives such as RLUSD’s launch, analysts anticipate XRP’s price to rise in the coming months.

This attention is focused on the new ETF offering, which provides a window into the cryptocurrency domain for a broader segment of investors.