XRP Soared 51% in a Month — Is It a Smart Long-Term Investment?

Highlights

• XRP had a strong performance in July, showing impressive short-term gains.
• The next few years could make July’s rally look modest by comparison.
• Several tailwinds are already driving momentum, with more likely to emerge.

XRP’s Momentum Is Just Getting Started — Here’s Why It May Be Worth Holding Long-Term

Runaway rallies rarely end smoothly, but that doesn’t stop investors from worrying they’ll miss out—or worse, buy at the top. In July, XRP (CRYPTO: XRP) surged over 50%, looking like it was on an unstoppable run before giving back some of those gains in early August. While one month’s performance doesn’t make or break a long-term investment, sharp price action can often hint at deeper changes—and in XRP’s case, those changes appear positive.

If you missed the July run-up, the key question now is whether XRP still offers a compelling entry point. The short answer? Yes—if you’re willing to invest in a project whose biggest tailwinds may only just be beginning.

What’s Fueling XRP’s Growth?

Several catalysts are behind XRP’s rapid ascent—and more could be on the way.

1. Anticipation of XRP Spot ETFs

One major driver of recent gains is growing optimism about XRP-based exchange-traded funds (ETFs). The SEC has set an October 17 deadline to rule on multiple XRP spot ETF applications. A recent regulatory update allowing in-kind redemptions has also cleared a major logistical barrier for approval. If approval is granted—as many expect before year’s end—it could significantly boost demand for XRP.

In-kind redemptions might sound like technical jargon, but they matter. They eliminate costs that previously deterred ETF issuers from including anything other than Bitcoin or Ethereum. If even one spot XRP ETF is approved, issuers will need to buy XRP directly on the market—reducing available supply and increasing upward pressure on the price.

2. New Ethereum-Compatible Sidechain

XRP also rolled out a key technological upgrade: the addition of an Ethereum Virtual Machine (EVM) sidechain, which went live on June 30.

This upgrade allows developers to bring Ethereum-based smart contracts to the XRP ecosystem, while users pay transaction fees in XRP. That bridges a major gap in utility that historically favored Ethereum and could attract more decentralized applications (dApps), developers, and users to the XRP Ledger. More apps mean more activity—and that could translate into stronger demand for XRP as both a utility and settlement token.

3. Growing Adoption of Tokenized Real-World Assets

Another long-term growth engine for XRP is its alignment with the booming trend of real-world asset tokenization.

Unlike many blockchains, the XRP Ledger includes built-in compliance features like issuer authorization and asset freezing, which are attractive to institutions navigating regulatory concerns. As a result, XRP now hosts the third-largest tokenized U.S. Treasury bill product across any blockchain. These tokenized assets act as a gateway, drawing in institutional capital—and once funds are on the XRP Ledger, they rarely leave.

Each dollar stored brings greater incentive to hold XRP for liquidity and transaction fees, creating a reinforcing loop of adoption.

XRP’s Opportunity Isn’t Without Risk

While XRP’s outlook is more promising than it’s been in years, investors should still approach with caution.

Regulatory risk remains a wildcard. The same SEC that could approve XRP ETFs might also impose tougher disclosure rules or regulatory frameworks that dampen institutional enthusiasm.

Technical challenges are another factor. Sidechains can be difficult to scale and often face reliability issues, especially when bridging assets between networks. And despite its advances, XRP still faces stiff competition from Ethereum and other blockchain ecosystems aiming to dominate the same tokenization and dApp niches.

That said, XRP’s roadmap looks more defined than it has since its last major rally in 2017. Long-term investors are betting that early wins—like ETF approvals, more dApps, and rising tokenized asset volume—will compound over time. That’s a reasonable thesis.

Should You Buy and Hold XRP?

For investors comfortable with crypto volatility, dollar-cost averaging into an XRP position over time could be a smart strategy. The coin is uniquely positioned within its niche, offering a rare mix of regulatory traction, technical progress, and institutional interest.

XRP may not be a guaranteed winner—but few cryptocurrencies are better set up for the next wave of adoption.

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