Cryptocurrency XRP approaches record peak price due to $18 billion investment surge
In a remarkable turn of events, the digital currency XRP has experienced a significant rally in July 2025, reaching prices over $3. The surge in XRP's market capitalisation, volume, and whale accumulation can be attributed to several key factors.
## Key Factors Behind XRP's Rally
1. **Rise in Open Interest**: The open interest for XRP futures contracts has surged to $10 billion, a 300% increase in less than a month. This surge in open interest suggests a strong influx of new capital into the market, serving as a bullish indicator for XRP's future performance.
2. **Potential Regulatory Developments**: The possibility of an XRP exchange-traded fund (ETF) approval and the resolution of legal uncertainties surrounding Ripple are seen as positive factors for XRP's price. These developments could increase investor confidence and attract more institutional investors.
3. **Market Sentiment and MVRV Ratio**: Despite the significant price increase, market sentiment remains surprisingly muted, which could limit the potential for a sharp correction typically seen with excessive hype. The MVRV (Market Value to Realized Value) ratio has also triggered a golden cross, a signal that previously preceded substantial price rallies.
4. **Institutional Adoption**: The increasing interest from institutions looking to adopt Ripple's underlying technology has been a significant factor in driving XRP's price upward. This institutional support can lead to sustained growth and higher volumes in the market.
5. **Technical Breakouts**: XRP breaking through key resistance levels, such as surpassing $3, has triggered further bullish sentiment and technical discussions about potential future price movements. Such technical milestones often encourage more investors to enter the market, contributing to increased volume and market capitalisation.
6. **Whale Accumulation**: The lack of widespread retail frenzy has allowed larger investors or whales to accumulate more XRP without sparking a price correction, which could further support the rally. This accumulation can lead to increased market capitalisation as more significant players enter or strengthen their positions in the market.
On July 17, 2025, XRP crossed the $2.95 mark and surged to $3.26, representing a 10.2% increase in the last 24 hours. This strong performance posted one of XRP's best single-day performances of 2025. As a result, XRP's market capitalization increased from $175.07 billion to $193.08 billion in just 24 hours.
Analysts, such as Martinez, have predicted the current leg up in XRP's price. The upside breakout in XRP's price is also accompanied by rising volume, with the 24-hour trading volume of XRP spiking 114.7% to $13.98 billion on July 17, 2025.
Moreover, XRP mega whales (wallets holding between 100 million and 1 billion XRP tokens) added over 2.2 billion XRP to their holdings in the last two weeks, further strengthening XRP's market dominance.
As XRP trades at $3.26, just 1% below its yearly high of $3.29 (recorded on January 18), investors and analysts alike are keeping a close eye on the potential for XRP to challenge its historic 2018 all-time high of $3.84. This bullish divergence in XRP's market structure is rarely seen in large-cap tokens without significant institutional involvement.
Crypto investing in XRP, driven by factors such as the rise in open interest for XRP futures contracts and potential regulatory developments, has been on the rise in the finance sector. The surge in open interest and the possibility of an XRP exchange-traded fund (ETF) approval could attract more institutional investors, increasing investor confidence and contributing to technology-led growth in the XRP market. Moreover, the increasing interest from institutions looking to adopt Ripple's underlying technology continues to support the rally, hinting at sustained growth and higher volumes in the market.
