Internet celebrity Tristan Tate has questioned the basis of why pro-XRP enthusiasts believe the crypto will surge past $100 this year. Since the start of the year, XRP has garnered a lot of interest, which grew tenfold when Ripple executives hinted at the possibility of the coin being included in the proposed US national digital currency stockpile.
In a February 4 X post, Tristan asked, “Can somebody explain the $XRP hype to me? Why on earth would this go to hundreds per coin?“
His query saw a series of responses in quoted posts, including one from golf influencer and model Bri Teresi, who remarked that XRP has real use cases in the financial world, and its utility will most likely drive its value upwards.
“XRP transactions take 3-5 seconds with very low fees. It was designed for cross-border payments and liquidity solutions. It serves as a bridge currency for fiat conversions… which Bitcoin can’t do. So the short answer is, it has Utility,” Teresi replied to Tate’s post.
Regulatory clarity adds to XRP hype
Ripple, the company behind XRP, has been positioning itself to benefit from potential regulatory clarity in the United States, even though its case against the US Securities and Exchange Commission is still ongoing.
There were rumors that when the startup’s executives met with President Donald Trump at his residence in Mar-a-lago on January 8, a deal was signed to “help” XRP and stablecoin Ripple-USD (RLUSD) appear in official government digital asset discussions.
Another development in this area also emerged on Tuesday, with the recent introduction of a stablecoin bill to US Congress by Senator Bill Hagerty.
As reported by FOX Business correspondent Eleanor Terret, the bill, dubbed the GENIUS Act (Guiding and Establishing National Innovation in U.S. Stablecoins), aims to set clear regulations for stablecoins, which are digital assets typically pegged to the US dollar.
🚨NEW: Today @SenatorHagerty introduces his stablecoin bill in the Senate. The bill is called the GENIUS (Guiding and Establishing National Innovation in U.S. Stablecoins) Act and aims to provide clear regulations for stablecoins.
Hagerty’s bill is designed to provide comprehensive guidance on the stablecoin market. This includes the establishment of licensing and reserve requirements for issuers. Per Terret, the proposed law will be discussed in today’s Digital Assets Press Conference, led by Crypto and AI Czar David Sacks.
The GENIUS Act is expected to push the regulatory framework for digital currencies and provide clearer guidelines for mass adoption. The legislation could pave the way for American traditional financial institutions to adopt stablecoins. Ripple could use its ties to the White House to champion RLUSD as a viable option, boosting the chances of an XRP price rally.
Institutions could look towards Ripple’s services
On Jan 27, Ripple announced it had secured Money Transmitter Licenses (MTLs) in New York and Texas. These states are known for their tough regulatory standards. This makes the acquisition of these licenses a “big step” for Ripple.
With these new licenses, Ripple now holds over 50 MTLs across the U.S. and more than 60 licenses worldwide, a strong indicator of its growing footprint in the financial industry.
Furthermore, Ripple’s On-Demand Liquidity (ODL) service is reportedly being tested by major financial institutions, including Bank of America, Santander, and American Express, to facilitate instant cross-border payments.
If Ripple’s case against the SEC ends in favor of the former, experts suggest the stablecoin issuer’s services could become integral to the operations of traditional financial institutions in the US. This could, in turn, drive demand for XRP as a bridge currency, pushing its value upward.
Still, even though the general sentiment in the market points to the coin’s rise, naysayers have disputed predictions of XRP clocking $100 soon.
One user on X, replying to Tristan Tate’s post, propounded that for the token to reach those levels, it would have to achieve a market cap of $6 trillion, which he said “could never happen.”
In order for XRP to hit 100’s of dollars it would need 6T market cap which is 4x bitcoins MC currently.
At the time of writing, XRP is testing the lower boundary of its previously bullish wedge pattern, trading at $2.63, a 1.34% downtick in the last day.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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