- A Chainlink ambassador highlights three major factors that could drive a strong XRP rally in 2025.
- Key catalysts include a potential XRP ETF approval, RLUSD stablecoin growth, and Ripple’s possible IPO.
Despite XRP’s rocky performance in early 2025, optimism around the digital asset remains strong. After soaring past $3 in January before dipping to the lower $2 range, XRP has found itself at the center of bullish speculation for a major comeback. Leading the charge is Ito Shimotshuma, a Chainlink ambassador, who recently outlined three compelling reasons XRP could rally in the months ahead.
1. The XRP ETF Approval Looms
One of the most promising catalysts is the potential approval of an XRP-based exchange-traded fund (ETF). The U.S. SEC is currently reviewing multiple applications from prominent firms like Bitwise, Grayscale, and CoinShares. Market odds favor approval, with Polymarket pegging the likelihood at 77%.
Changing regulatory winds under the Trump administration and Ripple’s legal victories against the SEC could further clear the path. Some experts suggest a green light could come as early as Q3 or Q4 2025, paving the way for a wave of institutional investment in XRP.
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2. Explosive Growth of Ripple’s RLUSD Stablecoin
The second driver is the success of RLUSD, Ripple’s native stablecoin launched in late 2024. In just a few months, RLUSD’s market cap has surpassed $240 million, with trading volumes experiencing impressive spikes.
Backed by integrations with platforms like Uphold, Bitstamp, and Chainlink-powered DeFi applications, RLUSD has become a vital liquidity tool. Analysts predict it could rank among the top five stablecoins by year-end — a growth trajectory that could indirectly fuel XRP’s demand and adoption.
3. Ripple’s Potential IPO
Finally, Ripple’s long-rumored initial public offering (IPO) could inject fresh energy into XRP’s market prospects. Although CEO Brad Garlinghouse once dismissed the idea due to regulatory headwinds, recent developments — including the SEC dropping appeals against Ripple — hint that an IPO is back on the table.
Should Ripple proceed with a U.S. public offering, it would likely boost investor confidence, spotlight XRP to mainstream audiences, and drive up its valuation.
With these three catalysts in motion, many believe XRP could be poised for a powerful resurgence before 2025 wraps up.
