XRP holders saw a wave of renewed activity in early December as the XRP Ledger’s velocity metric surged to its highest level in a year. In simple terms, more XRP coins were moving around the network than usual—a sign that traders, investors, and possibly institutions were becoming more active. This spike conveniently lined up with a short-lived rebound in XRP’s price, hinting that fresh momentum was building in the market.
Velocity is often viewed as a measure of how frequently a token changes hands. For XRP, higher velocity typically reflects more spot market trading and increased demand for Ripple’s on-demand liquidity (ODL) services, used for cross-border payments. Some market watchers believe the latest network activity could support a moderate rally of around 16%, although they also warn that broader crypto volatility could easily push prices in either direction.
The network boost comes as Ripple faces a defining moment of its own. In November, the company brought in a massive $500 million through a share sale backed by major Wall Street players like Citadel Securities and Fortress Investment Group. The deal valued Ripple at a striking $40 billion, one of the highest private valuations in the crypto space.
But the investment was anything but a simple bet. Traditional finance firms entered cautiously, structuring the deal with investor-friendly protections—such as guaranteed-return options if they choose to sell back their shares. These terms highlight how big institutions are approaching crypto: eager to participate, but determined to manage risk in a sector that remains unpredictable.
Ripple’s valuation also continues to be closely tied to XRP. According to Bloomberg, two investment funds estimate that roughly 90% of Ripple’s net asset value still comes from its XRP holdings. As of July, Ripple controlled around $124 billion worth of XRP, though much of it is locked and released gradually. Since mid-July, XRP’s price has dropped more than 40%, making Ripple’s balance sheet even more sensitive to market swings.
Still, Ripple is working to grow beyond its dependence on the token. The company’s $1.25 billion acquisition of prime brokerage Hidden Road signals a push toward building a broader financial ecosystem that doesn’t revolve solely around XRP.
For now, the token’s rising velocity and Ripple’s major funding round paint a mixed picture: growing interest, expanding ambitions, and undeniable momentum—but with risks that remain firmly in place. As both Ripple and the XRP Ledger evolve, their intertwined future continues to be one of the most closely watched stories in crypto.
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