The cryptocurrency market has been on an upward trajectory lately, and Ripple’s XRP has been one of the standout performers.

XRP has been on a steady rise since the start of the year, defying all odds and climbing to levels not seen in years.

In this article, we’ll explore the key reasons behind XRP’s impressive upward momentum and analyze the factors driving its growth. 

What is XRP?

Before we dive into the reasons behind XRP’s upward momentum, it is essential to understand what XRP is and how it works. 

XRP is a digital currency that was created by Ripple Labs in 2012, with the aim of providing a fast and cost-effective alternative to traditional cross-border payment systems.

For example, let’s say you want to send money from the United States to Japan.

With traditional payment systems, the process can take several days and cost you up to 5% of the transaction amount in fees.

With XRP, the transaction can settle in a matter of seconds and cost you just a fraction of a cent in fees.

Unlike other cryptocurrencies like Bitcoin, XRP was not created to serve as a currency or store of value.

Instead, it was designed as a bridge currency that financial institutions could use to facilitate cross-border transactions, allowing them to avoid the high costs and slow settlement times associated with traditional payment systems.

XRP Features

One of the key advantages of XRP is its speed.

Traditional cross-border payment systems can take several days to settle, while XRP transactions can settle in a matter of seconds.

This is possible because XRP transactions are validated by a network of decentralized servers rather than a centralized authority, making them more efficient and less prone to errors. 

Another core feature of XRP is its low cost. Traditional cross-border payment systems can be expensive, with fees ranging from 3% to 5% of the transaction amount. In contrast, XRP transactions are much cheaper, with fees averaging around $0.0004 per transaction.

For example, if you need to send $1,000 to a family member in another country, traditional payment systems could charge you up to $50 in fees. With XRP, the cost would be just $0.0004, a significant difference that can add up over time.

Overall, XRP’s unique features and its focus on providing a better alternative to traditional cross-border payment systems have made it a popular choice among financial institutions and investors alike. 

While Ripple’s growth has not been without its challenges, its potential to disrupt the cross-border payment industry has attracted a growing number of supporters, and its recent surge in price suggests that its long-term prospects remain strong.

Why is XRP Going Up?

why is XRP going up

Many beginner traders ask themselves a question: “Why is XRP going up?”

In this section, we will try to give an answer.

We will dive into the key factors that are driving XRP’s remarkable uptrend and try to decode the reasons behind its growth.

Ripple’s lawsuit with the SEC is driving interest

One of the primary reasons behind XRP’s recent surge is Ripple’s ongoing lawsuit with the Securities and Exchange Commission (SEC).

In December 2020, the SEC filed a lawsuit against Ripple, alleging that the company had conducted an unregistered securities offering worth $1.3 billion.

The lawsuit has been a major overhang on XRP’s price, with many exchanges suspending trading or delisting the token altogether.

However, the recent developments in the lawsuit have provided some hope for XRP investors.

In March 2021, Ripple secured a major victory when a judge granted its request to access internal SEC documents that could shed light on the agency’s views on cryptocurrencies like XRP.

This development has led to renewed interest in XRP, with many investors betting on a favorable outcome for Ripple in the lawsuit.

Growing adoption by financial institutions

Another key factor driving XRP’s growth is the increasing adoption by financial institutions.

Ripple’s technology, which enables faster and cheaper cross-border transactions, has been gaining traction among banks and other financial institutions.

In recent months, several major banks, including Standard Chartered and Banco Santander, have announced plans to use Ripple’s technology to facilitate cross-border payments.

The growing adoption of Ripple’s technology has boosted confidence in XRP’s long-term prospects, with many investors betting on its potential to become the go-to currency for cross-border transactions.

The overall bullish sentiment in the cryptocurrency market

Finally, XRP’s surge can also be attributed to the overall bullish sentiment in the cryptocurrency market.

Bitcoin, the largest cryptocurrency by market capitalization, has been on a tear lately, reaching record highs above $60,000.

The bullish sentiment in the market has spilled over to other cryptocurrencies, including XRP, which has seen a significant increase in demand from investors.


In conclusion, XRP’s surge can be attributed to a combination of factors, including Ripple’s lawsuit with the SEC, growing adoption by financial institutions, the overall bullish sentiment in the cryptocurrency market, and more.

While the outcome of Ripple’s lawsuit remains uncertain, the growing adoption of Ripple’s technology and the increasing demand for cross-border payments make XRP a compelling investment opportunity for long-term investors.

As always, investors should exercise caution when investing in cryptocurrencies and should do their due diligence before making any investment decisions.

Related: How to Invest in Cryptocurrency for Beginners