XRP price action slowed down after November’s rally, with a 1.26% weekly decrease. Currently, XRP trades at $2.41, 11% below its monthly high of $2.71.
However, it’s not all gloom and doom for XRP, because Bitget Chief Analyst Ryan Lee predicts XRP to regain its momentum. He notes that Ripple’s ecosystem developments, including the upcoming RLUSD stablecoin, could strengthen interest in XRP.
But XRP isn’t the only utility-driven project that has the potential to grow this market cycle. The Layer-2 solution like PlutoChain (PLUTO) might bring new use cases to Bitcoin through the introduction of smart contracts.
Let’s take a closer look below!
XRP Loses Momentum, But Long-Term Prospects Remain Bullish
In the short-term, things aren’t looking good for XRP. Exponential 10-day and 50-day moving averages suggest a bearish reversal, which is supported by low oscillator values. However, the 100 and 200-day moving averages indicate there’s still hope for XRP in the long run.
Trading volume rose from $12 billion on November 17 to $51.72 billion on December 12. There’s also been a noticeable spike in peer-to-peer payment volume on the XRP Ledger in the last six months. Overall, the number of active XRP wallets grew from under 10,000 in the summer to over 59,000 in December.
Alt text: XRP payment volume from one account to another, source: XRPScan.com
At the same time, the Total Value Locked (TVL) in XRP Ledger surged over 10x since March 2024, from a mere $517,000 to $65 million.
Could RLUSD and XRP ETF Launch Push XRP to a New All-Time High?
Last week, Ripple CEO Brad Garlinghouse announced the final approval of the RLUSD stablecoin, pegged to the US dollar and running on XRP Ledger and Ethereum. Ryan Lee notes this is a major step for Ripple’s ecosystem expansion and that it could benefit XRP.
He also believes that favorable regulatory updates, such as SEC Chair Gary Gensler’s resignation, might support the upward trend.
Ben Armstrong, known on X as BitBoy, points out that Grayscale’s XRP Trust has grown by over 300% since May 2024. The analyst thinks we might soon see an XRP ETF, which would increase XRP’s accessibility and instill confidence in the community.
Armstrong predicts XRP to hit $4.50 by January, an 86% increase from the current price. Given the flag pattern forming on XRP’s price chart, there’s still much room for growth. If XRP repeats its 2024 rally, it could reach $9.70 by Q3 2025 (+300%).
PlutoChain Could Lead the Way in Bitcoin Layer-2 Technology Potentially Opening Doors to Broader Applications
It’s evident that the reason behind the XRP rally is its utility rather than speculation. This is the main distinction of this year’s bull run from 2021 when the focus was on meme coins. Now, the community realizes there’s a need for innovative solutions to real problems.
One such solution is PlutoChain (PLUTO), an L2 blockchain that could expand Bitcoin’s functionality. While Ethereum dominates the decentralized apps (dApps) sector, Bitcoin is primarily viewed as a store of value. This hinders its adoption and prevents it from reaching maturity.
PlutoChain could introduce smart contracts on Bitcoin potentially allowing the development of native dApps. On top of that, it could bridge Bitcoin with Ethereum so that developers could port existing apps from one network to another.
Bitcoin's slow transaction speeds have long been a barrier for dApp developers, with block times averaging around 10 minutes. PlutoChain could address this issue through its Layer-2 technology, which reduces transaction processing times to just two seconds. This innovation could make Bitcoin a viable option for large-scale decentralized finance (DeFi) applications without altering its core blockchain.
This way, PlutoChain may transform Bitcoin into a diverse dApp ecosystem that uses the network’s secure foundation but has greater scalability and interoperability.
Transparency and Security Are the Core Values of the PlutoChain Ecosystem
Community is integral to PlutoChain’s vision. Unlike traditional centralized structures, PlutoChain’s decentralized governance model allows users to steer the project’s direction.
Members can submit proposals regarding product upgrades, partnerships, and smart contract development. During the community review phase, users can share feedback to improve proposal details and consider all implications. Diverse perspectives ensure proposals benefit the community as a whole.
PlutoChain passed three security audits to bolster community confidence and mitigate potential risks. SolidProof, QuillAudits, and Assure DeFi confirmed the network has adequate measures in place to protect user information and funds.
Utility-Driven Projects Like XRP and PlutoChain Might Lead This Rally
The Ripple ecosystem virtually rose from the ashes after the company won its legal battle with the SEC. Despite XRP’s recent correction, analysts are confident it will continue to grow and strengthen its market position. In an optimistic scenario, XRP could reach a new all-time high of $4.50 in January and another high of $9.70 by fall 2025.
Meanwhile, PlutoChain (PLUTO) might change how we perceive and use Bitcoin. Smart contracts, Ethereum interoperability, and an engaged developer community could help introduce entirely new use cases within sectors like DeFi, AI, NFT, and GameFi.
PlutoChain’s potential role in Bitcoin’s expansion makes it a project worth watching during this bull run.
Remember, this article is not financial or trading advice. All cryptocurrencies are volatile, and past performance is not a guarantee of future results. Always conduct your own research and/or consult with experts before making any crypto-related decisions. Trade responsibly. Forward-looking statements are uncertain and might not be updated.
