XRP has had its fair share of ups and downs in the crypto market, but according to crypto expert Edoardo Farina, 2025 is poised to be a strong year for the digital asset. Despite recent market struggles and a 4% dip in price over the past day, Farina is confident that XRP will see higher prices this year, driven by several key catalysts.

XRP’s Recent Performance

At press time, XRP is trading at $2.40, marking a 25% loss for those who purchased the asset in the past two months. While this price action may seem discouraging, it’s important to note that XRP had an impressive start to 2025. Despite the overall market downturn, XRP posted a 15% year-to-date gain, standing out among major cryptocurrencies like Bitcoin and Ethereum, which are down 10% and 40% year-to-date, respectively.

Farina’s Bullish Outlook for 2025

While many analysts are questioning whether the bull market is over and if digital assets like XRP will reach new highs, Farina offers a different perspective. As the Head of Social Adoption at XRPHealthcare, Farina is optimistic about XRP’s potential in 2025. He asserts that there’s no way XRP won’t see higher prices this year.

Farina highlighted several key factors that could push XRP to new heights in 2025, starting with the potential introduction of XRP Exchange-Traded Funds (ETFs). More than 15 XRP ETF applications are currently under review by the U.S. Securities and Exchange Commission (SEC). These financial products could make XRP more accessible to institutional investors and the general public, potentially driving up both demand and price. Farina drew a comparison to Bitcoin, which saw significant price increases following the debute of Bitcoin ETFs in 2024.

Stablecoin Regulations and Ripple’s RLUSD

Another significant factor driving Farina’s bullish outlook is the anticipated U.S. stablecoin regulations. Although XRP itself is not a stablecoin, many in the crypto community believe that upcoming stablecoin regulations could indirectly benefit XRP, particularly through Ripple’s RLUSD stablecoin.

XRP community researcher SMQKE argues that stablecoin regulations would provide greater clarity and credibility for Ripple’s RLUSD, potentially driving more adoption. As RLUSD grows in use, the demand for XRP could rise due to transaction fees paid in XRP, which are burned, reducing the token’s supply. This decrease in supply, combined with increased demand, could lead to higher prices for XRP.

Institutional Support and FOMO

Farina also sees significant potential for XRP to benefit from growing institutional support. The U.S. government has shown signs of backing crypto firms, and President Donald Trump has expressed support for U.S.-based companies like Ripple. This institutional backing could enhance the acceptance and mainstream adoption of XRP, which would likely drive its value higher.

Additionally, Farina speculated that “institutional FOMO” (fear of missing out) could take hold in the XRP market. As more institutional investors begin to flock to XRP, their large-scale buying could push the price to new levels, resulting in a surge in demand.

Potential Supply Shock

Farina also pointed to the possibility of a “supply shock” for XRP. A supply shock occurs when the available supply of an asset decreases due to increased demand, leading to higher prices. In XRP’s case, the combination of regulatory clarity, institutional interest, and growing adoption could trigger such a scenario, driving the price to new all-time highs (ATH) in 2025.

Conclusion

Despite recent price struggles, Farina’s outlook for XRP in 2025 remains positive. With factors like XRP ETFs, stablecoin regulation, increasing institutional support, and the potential for a supply shock, there are several bullish catalysts that could propel XRP to new heights this year. If these factors align, XRP may be on track to reach its all-time high, making 2025 a year of significant growth for the cryptocurrency.