2025 is now upon us, and following 2024’s outsized returns, crypto enthusiasts are hoping for another bountiful year.
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Judging by the history of post-halving years, that’s not such a fanciful notion. Moreover, this time, there’s an additional tailwind fueling bullish sentiment: the new Trump administration is about to take the reins and is expected to bring with it a wholly favorable stance toward all things crypto.
For Ripple (XRP) investors, this shift holds particular significance. After its previous legal tussles with the SEC, an easing of regulations could sustain the strong gains seen in 2024. XRP was one of last year’s standout performers, soaring by 282%, though it’s worth noting that most of those gains came after Trump’s election victory.
But the question is whether XRP still represents a good investment opportunity right now? Or as top investor Will Ebiefung puts it, “will the reality live up to the hype?”
Ebiefung, who sits in the top 2% of TipRanks’ stock pros, points out several important aspects about Ripple. There are plenty of blockchains aiming to transform finance, but Ripple is nearer that goal than most; its network streamlines international money transfers using XRP as a bridge currency, enabling quick, low-cost exchanges – for instance, converting dollars to yen without traditional intermediaries. As such, Ripple has the potential to disrupt global payments with its speed and low cost. Transactions settle in seconds compared to SWIFT’s days, and fees are a fraction of a cent (0.00001 XRP) versus $35–$50 for traditional wire transfers.
Additionally, Trump’s SEC chair nominee, Paul Atkins, is very crypto friendly, contrasting in a big way with current chair Gary Gensler’s antagonistic approach. Recall, Ripple was issued a $125 million fine by the SEC for selling XRP as unregistered securities. However, it secured a partial victory, with the ruling distinguishing institutional sales (securities) from retail sales on secondary markets (not securities).
So, down to the nitty-gritty, should investors get on board? Not right now appears to be Ebiefung’s stance. While the 5-star investor thinks Ripple has plenty of potential, the timing is not quite right.
“After seeing its value more than triple in 2024, XRP may have already priced in much of the fundamental tailwinds expected in 2025,” Ebiefung opined. “With that in mind, long-term investors may want to wait for some of the crypto hype to die down before considering a position in the token.” (To watch Ebiefung’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.