XRP Surges 300 Percent as Corporate Adoption and Institutional Crypto Bets Accelerate

03.06.2025 12 times read 0 Comments

Ripple’s XRP Gains Momentum with New Ally and Outpaces Bitcoin

Ripple’s XRP has experienced a remarkable surge over the past year, climbing 300% compared to Bitcoin’s 50% price rally. This significant growth has brought XRP close to its 2018 all-time high, as Ripple, the developer behind XRP, seeks to strengthen ties with the crypto-friendly administration of U.S. President Donald Trump. Notably, U.S. Vice President JD Vance has made a substantial crypto prediction, further fueling market optimism.

A major development comes from VivoPower, a sustainable energy company listed on Nasdaq and backed by Saudi interests. VivoPower announced plans to purchase $121 million worth of XRP, with $100 million of the funding led by Saudi prince Abdulaziz bin Turki Abdulaziz Al Saud. The prince, who recently met with Trump, emphasized the strategic focus on XRP and the goal to contribute to the development of the XRP Ledger (XRPL). Adam Traidman, former SBI Ripple Asia executive, has joined VivoPower as chairman of the board, highlighting the company’s commitment to an XRP-centric treasury strategy and investment in the XRPL decentralized finance (DeFi) ecosystem.

Ripple, as an enterprise-focused blockchain service, holds approximately 80 billion of the total 100 billion XRP supply, using it primarily for cross-border payments. The trend of companies adding cryptocurrencies to their treasuries began with MicroStrategy’s strategy in 2020, which led to a near-3,000% stock rally and inspired similar moves by other firms. Recently, GameStop also started buying Bitcoin, and other cryptocurrencies like Ethereum and Solana have been adopted as treasury assets by various companies.

The XRP rally received an additional boost when President Trump named XRP among the select cryptocurrencies to be included in the U.S. government’s crypto stockpile, providing unprecedented validation to the asset class.

Asset 1-Year Price Increase Recent Major Purchase
XRP 300% $121 million by VivoPower
Bitcoin 50% GameStop, other corporates
  • VivoPower’s $121 million XRP purchase is led by $100 million from Saudi prince Abdulaziz bin Turki Abdulaziz Al Saud.
  • Ripple holds 80 billion of the 100 billion total XRP supply.
  • Trump administration’s endorsement of XRP has provided significant market validation.

Infobox: XRP’s 300% rally and major corporate adoption signal growing institutional confidence in blockchain assets, with Ripple and its allies at the forefront of this trend. (Source: Forbes)

Bitcoin Surges Past $105,000 Amid Institutional Flows and Fed Signals

Bitcoin has topped $105,000, driven by heightened market volatility and increased institutional flows. The surge comes as investors closely monitor signals from the Federal Reserve, with the market reacting to recent trade tensions escalated by U.S. President Donald Trump. The cryptocurrency market has seen significant activity, with Bitcoin’s price performance standing out among digital assets.

Market participants are also watching for further developments in U.S. monetary policy, which could impact the demand for cryptocurrencies as alternative assets. The recent rally has brought Bitcoin within striking distance of its all-time high, with traders and investors anticipating potential new records if current trends continue.

Cryptocurrency Current Price Key Drivers
Bitcoin $105,000+ Institutional flows, Fed signals, trade tensions
  • Bitcoin’s price is closely tied to institutional investment and macroeconomic signals.
  • Market volatility has increased following political and economic developments.

Infobox: Bitcoin’s rise above $105,000 highlights the influence of institutional investors and central bank policy on the crypto market. (Source: The Economic Times)

Corporate Crypto Treasuries: Financial Alchemy and the Rise of DATs

Public companies are increasingly acquiring Bitcoin and other digital assets for their treasuries, a trend that has been handsomely rewarded by the market. Digital asset treasury companies (DATs) offer investors leveraged exposure to cryptocurrency inflection points, with the core strategy being to exchange inflationary assets (dollars) for scarce assets like Bitcoin.

MicroStrategy, now known as Strategy, leads the DAT movement, holding 580,250 Bitcoin—2.8% of the maximum supply—valued at approximately $60 billion. The company’s shares have traded at twice the value of its Bitcoin holdings and underlying business, with a targeted BTC yield of 4 to 8%. Other firms, such as MARA and Twenty One (backed by Cantor Fitzgerald, SoftBank, and Tether), have also adopted similar strategies, with Twenty One holding 42,000 BTC worth $3.6 billion. The approach is spreading to other cryptocurrencies, including Solana and XRP, with companies like Upexi and DeFi Development Corp. building treasuries in these assets.

However, the leveraged nature of these strategies introduces significant risks. A downturn in crypto prices could force DATs to sell assets to repay borrowings, potentially accelerating market declines. Strategy’s average Bitcoin purchase price is $68,459, a 30% discount to current prices, providing some buffer, but debt obligations remain a concern.

Company Asset Holdings Value
Strategy (MicroStrategy) Bitcoin 580,250 BTC $60 billion
Twenty One Bitcoin 42,000 BTC $3.6 billion
  • DATs offer leveraged exposure to crypto, but carry risks in downturns.
  • Strategy’s average BTC purchase price is $68,459 (as of April 27).
  • Other companies are building treasuries in Solana and XRP.
"Your fundamental premise here is 'sometimes people will buy $1 for $1.5 for no apparent reason [and] we think this can last forever,'" said Nic Carter, partner at Castle Island Ventures, regarding the DAT trend.

Infobox: The rise of DATs reflects growing corporate interest in digital assets, but investors should be wary of leverage and market volatility. (Source: Axios)

Bitcoin to $120,000: The Defining Bet of 2025

As Bitcoin trades near $106,000 in early June, retail traders are increasingly betting on a year-end price target of $120,000. Data from crypto options exchange Deribit shows that open interest in Bitcoin options has surpassed $32 billion, with a significant concentration around the $120,000 strike price. Most of these bets are set for December 2025 expiry, indicating strong long-term conviction among retail investors.

Deribit’s research head, Luuk Strijers, notes that the $120,000 strike price has become the “anchor” for bullish sentiment in the market. Achieving this target would require a more than 65% rally from current levels. Catalysts supporting this optimism include steady inflows into spot Bitcoin ETFs, potential Federal Reserve policy shifts, and intensified retail FOMO if Bitcoin breaks above $75,000. However, analysts caution that crowded trades can be vulnerable to sharp corrections, especially if macroeconomic shocks or regulatory changes occur.

Current BTC Price Target Price Open Interest (Options) Key Expiry
$106,000 $120,000 $32 billion+ December 2025
  • $120,000 is the most crowded bet among retail traders for 2025.
  • Spot Bitcoin ETFs and Fed policy are key catalysts.
  • Risks include market corrections and regulatory changes.

Infobox: The $120,000 Bitcoin price target has become the defining wager of 2025, reflecting strong retail conviction but also heightened risk. (Source: Fingerlakes1.com)

Vitalik Buterin: Ethereum Should Scale by 10X in the Next Year

Ethereum co-founder Vitalik Buterin has stated that the blockchain’s capabilities should increase tenfold over the next year to address congestion and improve efficiency. Speaking at ETHGlobal Prague 2025, Buterin emphasized the need for safe scaling of Ethereum’s layer-1 (L1) network, aiming for a 10x improvement in costs and speed. He cautioned against more aggressive scaling, such as a 1,000x increase, to avoid centralization risks.

Ethereum has faced criticism for its speed and efficiency compared to competitors like Solana, although ETH has recently rallied above $2,500, up nearly 40% over the past month. The coin remains about 48% below its 2021 record price of $4,878. Layer-2 (L2) networks, such as Arbitrum and Optimism, have helped alleviate congestion, but there are concerns about their long-term impact on Ethereum’s market capitalization.

Metric Current Value Target (Next Year)
ETH Price $2,625.72 N/A
Scaling Goal 1x 10x
2021 Record Price $4,878 N/A
  • Buterin advocates for a 10x scaling of Ethereum L1 within a year.
  • ETH has rallied nearly 40% in the past month, trading above $2,500.
  • Layer-2 solutions are growing, but concerns remain about their effect on ETH’s value.
"My view is that generally we should scale L1 by about 10x over the next year and a bit," said Vitalik Buterin at ETHGlobal Prague 2025.

Infobox: Ethereum’s planned 10x scaling aims to address congestion and efficiency, with Buterin urging a cautious approach to avoid centralization. (Source: Decrypt)

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