Ripple's digital asset XRP has gained significant traction in December 2024, recently surpassing Tether (USDT) to become the third-largest cryptocurrency by market capitalization.

In just six weeks, XRP has surged by an impressive 396%, climbing from seventh place to its current standing as the third-largest cryptocurrency by market value.

Investor confidence in Ripple has notably increased following the resolution of its legal issues with the US Securities and Exchange Commission (SEC), leading to expectations of greater adoption of XRP in global banking.

Wealth managers are drawing parallels between XRP's transformative potential in international payments and the early days of Amazon, speculating that it could handle trillions of transactions daily, potentially pushing its price to $132, a staggering 23,900% increase from current levels.

The anticipated launch of Ripple USD, an XRP-based stablecoin pegged to the dollar, is expected to enhance the XRP ecosystem and improve payment efficiencies.

Each transaction slightly reduces the total supply of XRP due to a small fee, which increases scarcity and may enhance its potential value.

There has been a significant uptick in active XRP accounts and transaction frequency, indicating a growing usage and adoption of the cryptocurrency.

The surge in XRP's price is also linked to the U.S. elections in November and potential regulatory changes, particularly with the anticipated replacement of SEC chair Gary Gensler by Paul Atkins, who may be more favorable towards cryptocurrencies.

XRP has experienced a notable 124% price increase in the past 30 days, reflecting rising demand as Ripple expands its partnerships, especially in Asia.

While the broader cryptocurrency market is experiencing a surge that may benefit XRP, volatility is expected in 2025 as competition increases.

Analysts predict that XRP could see significant price increases, forecasting a range between $30 and $35 by 2025, representing an increase of approximately 1,277% from its current price.

Despite the optimistic outlook, experts advise investors to remain vigilant as cryptocurrency markets are volatile, recommending that they realize gains rather than waiting for potentially unattainable peak prices.