Ripple Labs XRP continues to attract the attention of retail investors, making it a key pillar of the cryptocurrency market.
Despite emerging trends and technologies, digital assets still attract the interest of everyday ordinary market participants.
Raoul Pal, CEO of Real Vision, via his X account, recently shed some light on how XRP differs from most beginner alts.
Unlike other cryptocurrencies, XRP has not had a steady run. The cryptocurrency has been in a legal battle with the US Securities and Exchange Commission (SEC) since 2020.
This led to mass delisting from various exchanges. Despite these challenges, XRP has maintained its status as a top-10 cryptocurrency by market capitalization.
However, XRP managed to survive this and remain among the top 10 cryptocurrencies by market capitalization.
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Pal pointed out that the crypto market is constantly attracting new investors and when this is the case, most of them choose to invest in XRP.
Key drivers of retail appeal
According to Pal, a combination of factors contribute to XRP’s continued appeal among retail investors. Lower transaction fees make it ideal for those holding smaller amounts of cryptocurrency; simplicity reduces the stereotypical difficulties that a new user may face.
Furthermore, it has advantages related to the connection with Ripple – a blockchain company that is considered a leader in international payment systems.
This credibility has fostered a loyal and enthusiastic XRP community, often described as a “cult”, which has been instrumental in strengthening the cryptocurrency’s market presence.
The return of XRP and institutional impact
Interestingly, Pal’s recent comment marks a change in his view on XRP. In an August 2024 video, he criticized the asset, advising investors to switch to newer options and even labeling XRP “irrelevant.”
However, a significant price jump of 475% between November and December 2024 showed that his skepticism was premature. This jump, which significantly outperformed the broader market, was fueled by optimism following Donald Trump’s election victory.
Many investors expected the new administration to provide much-needed regulatory clarity, especially for assets like XRP that have long faced legal uncertainty.
Pal also took the opportunity to criticize the growing trend of AI-driven blockchain agents, which are gaining traction as a key narrative for 2025.
Hailed as revolutionary blockchain interaction tools, these agents have generated excitement among high-risk traders. However, Pal is not buying into the trend stating that it is more of a fad because it doesn’t offer enough benefit or value for the average investor.
However, he cited Ripple, XRP as an example of an asset that has always protected the interests of middle-class trading participants.
XRP’s ability to weather market turbulence and maintain its relevance underscores its unique position in the crypto ecosystem.
From Pal’s perspective, XRP’s continued popularity makes a lot of sense since it’s not a speculative product based solely on hype like most cryptocurrencies.
Until XRP secures a favorable outcome in its ongoing legal battle with the SEC, XRP has shown time and time again that it can buck the trend.
