Ripple introduced XRP to streamline transactions in its global payment network, hitting an all-time high on July 18. XRP’s value plummeted in 2018 due to regulatory issues, but a friendlier stance from the SEC under Trump’s administration has revived the cryptocurrency’s prospects. However, the recent surge in XRP may not be sustainable.

Ripple aims to revolutionize cross-border transactions by enabling direct and instant settlements between global banks through its Ripple Payments network. XRP, the cryptocurrency created by Ripple, standardizes these transactions, allowing for cost-efficient transfers across borders. Ripple gradually releases XRP tokens to meet demand, with a total supply of 100 billion tokens.

Trump’s election win marked a turning point for Ripple, with the appointment of a crypto advocate to run the SEC and a more favorable regulatory environment. The SEC settled its lawsuit against Ripple, prompting renewed investor interest in XRP. Approval of a leveraged XRP ETF on July 18 further boosted XRP’s value.

Despite the recent success of XRP, potential risks remain. The use of XRP within the Ripple Payments network carries volatility risks for banks, and success in the network may not necessarily translate into higher XRP prices. Additionally, XRP’s centralized nature under Ripple’s control exposes it to regulatory vulnerabilities that could impact its value in the future.

Investing in XRP comes with uncertainties, despite recent highs. The Motley Fool Stock Advisor team recommends considering other stocks for investment opportunities, as XRP wasn’t among their top picks. Past performance of their recommendations has produced significant returns compared to the market average.

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