XRP (CRYPTO: XRP) has been the best-performing major cryptocurrency over the last six months. Its token price has risen 430% across the stretch, and the cryptocurrency now has a total market capitalization of $183 billion.
XRP's recent rally was kicked off by Donald Trump's victory last November. It stems partly from expectations that the new president will help reduce regulations and promote growth for the crypto space.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
The other big component in XRP's Trump-related rally is the expectation that some long-running legal issues surrounding the token will be cleared up. Now that the Securities and Exchange Commission (SEC) is poised to be led by Trump pick Mark Uyeda, there seems to be a good chance that the agency could drop its securities violations case against Ripple Labs, the company that created XRP.
But while XRP has already seen big gains in conjunction with these catalysts, there's another potential development on the horizon that could push its token price far higher.
Trump could make a move that powers more big gains for XRP
During his presidential campaign, Trump said he wanted to create a U.S. strategic Bitcoin reserve. Subsequent reports have confirmed that he's still looking to create a crypto reserve, which would function similarly to the existing gold reserve. But the new president is now reportedly thinking about significantly expanding the project scope to include other tokens.
Trump is said to favor U.S.-originated cryptocurrencies including XRP and Solana for the government reserve project. If XRP were to wind up being part of a U.S. crypto reserve initiative, there's a very good chance that the development would push its token price well above current levels.
For starters, the country would first need to buy the token -- which would increase demand and create positive pressure for its price. Being part of the cryptocurrency reserve system could also be great for XRP's brand and a beneficial long-term pricing catalyst.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $381,355!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,390!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $514,479!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of January 21, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Solana, and XRP. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
