XRP (XRP) fell 2.55% in the last 24 hours.

Gate News Bot news, on December 23, according to CoinMarketCap data, as of the time of writing, XRP (XRP) is currently priced at $1.88, down 2.55% in the last 24 hours, with a high of $1.98 and a low of $1.77. The current market capitalization is approximately $113.841 billion, ranking 5th in global encryption asset market capitalization.

The XRP Ledger is a blockchain designed for business, led by a global community of enterprises and developers, dedicated to solving problems and creating value. The chain has been verified to maintain a flawless operational record over more than ten years, featuring a smooth development experience, low transaction costs, high performance, and sustainability. The XRP Ledger offers features such as decentralized exchanges, cross-currency payments, payment channels, multi-signature, and tokens, capable of processing thousands of transactions per second, with transaction fees of only a few cents. The network has achieved over 10 years of uninterrupted, error-free operation across more than 63 million ledgers.

Analysis of Recent Key Drivers for XRP

1️⃣ Spot ETF funds continue to see net inflows, institutional layout confidence remains stable Since its launch in November, the US spot XRP ETF has seen cumulative inflows surpassing $1 billion, making it the fastest cryptocurrency asset to reach this milestone after the Ethereum spot ETF. The ETF products have expanded to five, including issuers like Canary Capital, Grayscale, Bitwise, Franklin Templeton, and 21Shares. Among them, Franklin Templeton's XRPZ has the lowest management fee rate of just 0.19%, with institutions continuously optimizing investor costs through fee competition. In contrast, Bitcoin ETFs faced around $2.9 billion in net outflows during the same period, highlighting XRP's remarkable ability to attract funds against the trend. This sustained inflow of institutional funds indicates a high recognition of XRP's long-term value among market participants, which remains unchanged even in an environment of short-term price adjustments.

2️⃣ Rapid expansion of cross-chain ecosystem, significantly enriching DeFi application scenarios Wrapped XRP (wXRP) has officially launched on the Solana network, introduced through a collaboration between Hex Trust and LayerZero, supported by native XRP at a 1:1 ratio. At the initial launch, over $100 million in liquidity was locked, allowing XRP users to participate in decentralized finance activities across multiple networks such as Solana, Ethereum, Optimism, Ink, and Unichain. Meanwhile, Ripple's stablecoin RLUSD has initiated a multi-chain pilot, launching on the Ethereum L2 network via the Wormhole protocol. These cross-chain advancements signify the evolution of the XRP ecosystem from a single-chain to a multi-chain strategy, creating conditions for the expansion of its application scope, while also broadening the usage scenarios of XRP and RLUSD across different ecosystems, enhancing its value proposition as a cross-chain liquidity asset.

3️⃣ Improvement in the maturity of the derivatives market, optimization of institutional trading infrastructure The XRP futures launched by the CME Group now support the TAS (Trade at Settlement) feature, allowing investors to buy and sell at the day's closing settlement price or nearby prices, aimed at precise hedging and reducing settlement risks. These spot quoted XRP futures contracts can be traded across markets with major U.S. stock index futures. The continuous improvement of the derivatives market provides institutional investors with more convenient hedging and trading channels, further enhancing the institutional trading infrastructure for XRP.

4️⃣ Significant optimization of network infrastructure costs, continuously enhancing ecological competitiveness The total daily fees of the XRP Ledger have decreased from 5,900 XRP/day to about 650 XRP/day since early February, a drop of 89%, reaching the lowest level since December 2020. This reflects further optimization of network transaction costs, enhancing the competitiveness of XRP in payment applications. The newly launched MPT tokenization standard on the XRP Ledger provides greater support for bringing real-world assets on-chain, and these continuous upgrades at the infrastructure level consolidate the ecological competitive advantage.

5️⃣ Institutional strategic layout heats up, multi-channel promotion of asset financialization Nasdaq-listed VivoPower plans to invest $300 million through a new joint venture to acquire shares of Ripple Labs, allowing investors indirect access to nearly $1 billion worth of underlying XRP assets. Based on the current XRP price, this equity represents approximately 450 million XRP tokens. Digital Wealth Partners has launched an algorithmic trading application specifically for high-net-worth XRP holders, enabling it to operate within tax-advantaged accounts such as Individual Retirement Accounts (IRA), with assets custodied by the U.S. regulated Anchorage Digital. SBI Ripple Asia has partnered with Doppler Finance to launch XRP-based yield products and tokenization services for real-world assets, with SBI Digital Markets acting as the institutional custodian under the regulation of the Monetary Authority of Singapore. This series of initiatives indicates that institutional investors are deepening their participation and positioning in the XRP ecosystem from multiple dimensions.

6️⃣ The support structure is at a critical position amid fluctuations in market sentiment XRP is currently at a key technical support level near $1.92. Although the price is under pressure in the short term, it faces risks from investors' assessments as the year-end approaches and the chain reaction of mainstream asset pullbacks like Bitcoin. However, factors such as the improvement of institutional-level infrastructure from multiple parties, continued net inflows into spot ETFs, and the rapid expansion of cross-chain ecosystems provide strong support. On the macro side, the rebound of the US dollar index above 98 puts pressure on risk assets, and the overall sentiment in the encryption market is in a state of deep panic. If market sentiment warms up or the macro environment improves, these accumulated positive factors are expected to become an important driving force for price rebounds.

This message is not intended as investment advice; investors should be aware of the risks of market fluctuations.