XRP Surges in Latin America, SEC Settlement Boosts Momentum

XRP, Ripple’s digital asset, has seen a significant increase in its presence within Latin American crypto portfolios. According to the H1 Crypto Landscape in Latin America report, XRP has surpassed ether to become the second most held asset by investors in the region. The report, which analyzed customer behavior in Argentina, Brazil, Colombia, and Mexico, found that while bitcoin remains the dominant cryptocurrency, XRP has gained traction, being present in 12% of all accounts custodied by Bitso. This shift indicates a growing interest in XRP among investors in Latin America, particularly in countries like Mexico and Colombia where bitcoin’s dominance is relatively lower.

XRP’s adoption in Latin America is also influenced by the region’s economic instability and cultural preference for the U.S. dollar. Stablecoins, which are digital assets pegged to the value of a stable asset like the U.S. dollar, continue to lead in cryptocurrency acquisitions, comprising 46% of all purchases across the region. This trend is particularly evident in Argentina, where stablecoins were involved in 85% of all crypto purchases, with USDT leading the charge. The continued growth of stablecoins in Latin America is likely a consequence of the increase in real-world use cases, such as remittances and cross-border payments, which are facilitated by the stability and liquidity of these assets.

XRP’s legal battle with the U.S. Securities and Exchange Commission (SEC) has been a significant factor influencing its adoption and market sentiment. After years of legal uncertainty, many analysts now believe that a favorable SEC stance or a final settlement could open the floodgates for major institutional inflows. This renewed hope has sparked bullish momentum, with several traders eyeing a move toward the elusive $10 mark if clarity arrives in the coming months. The SEC’s next move on XRP could send shockwaves across the altcoin market, sparking renewed rallies and attracting new investors to the space.

Ripple’s broader push into stablecoins, with RLUSD surpassing $577 million in market cap, shows rising institutional interest and hints at future product rollouts. Meanwhile, on-chain data shows more than $1.35 billion worth of XRP was moved on August 2 alone—the largest volume day since July’s rally. That kind of network activity is typically seen ahead of major breakouts, indicating that XRP’s momentum is building. However, this momentum hinges on regulatory resolution. If the SEC formally steps back, XRP could rally hard, setting the stage for a multi-year bull cycle. Pair that with Ripple’s growing ecosystem and institutional activity, and there’s a clear path toward double-digit prices.

The XRP Ledger has recorded strong growth in tokenized assets during the past month. Data from Real World Asset Watchlist showed that the XRP Ledger’s tokenized asset value rose by 32.27% over the last 30 days, bringing the total to more than $243 million. This increase places the network ahead of several large blockchains in this category. The tokenized assets on the XRP Ledger include various real-world assets such as commodities, currencies, and other instruments represented digitally. This expansion may reflect growing adoption of blockchain-based settlement solutions by institutions, as market participants watch to see if this growth trend will continue over the coming months.

The U.S. Securities and Exchange Commission (SEC) recently settled its lawsuit against Ripple, the company that issues XRP. This development followed the SEC’s decision to withdraw its appeal against a 2024 court ruling, which had determined that XRP is not a security when traded on public exchanges. The legal dispute began in 2020, when the SEC alleged that Ripple sold XRP in a manner that violated securities laws. Ripple agreed to pay a $125 million penalty after the 2024 ruling, but the case continued through the appeal process until the withdrawal last week. The settlement is expected to give Ripple greater operational certainty and remove a long-standing source of uncertainty for market participants.

The Ripple SEC settlement has cleared the path for XRP to be traded with far fewer legal question marks, an event the market has greeted with evident enthusiasm. The outcome has provided the legal clarity that traders and investors have been demanding for years. With one of the longest and most closely watched crypto legal battles now settled, XRP finds itself in a stronger position. The settlement dismissed all pending appeals and set a $125 million penalty for Ripple, confirming that XRP sales on public exchanges are not classified as securities under U.S. law, while some institutional sales remain subject to regulation.

Ripple’s core business model focuses on providing faster, cheaper, and more efficient cross-border payments. XRP is the bridge currency in these transactions, enabling liquidity and settlement across different fiat currencies. With legal uncertainties resolved, Ripple can push ahead with partnerships in banking and global remittance sectors without the overhang of potential U.S. enforcement action. This improved environment could also encourage more exchanges to list XRP or expand its trading pairs, increasing liquidity and reducing slippage for large transactions. Combined, these factors could provide more stability to Ripple settlement XRP price over the long term.

While optimism is warranted, caution is essential. Broader crypto market conditions, particularly Bitcoin’s performance, will continue to influence XRP’s trajectory. Regulatory developments in other countries, macroeconomic shifts, and investor sentiment toward risk assets could also impact price action. Even with the settlement, institutional sales of XRP remain under SEC oversight. Ripple will need to ensure compliance to avoid any fresh disputes. The possibility of an XRP exchange-traded fund (ETF) becomes more realistic with the legal cloud lifted. Such a product would provide regulated, easily accessible exposure to XRP for institutional and retail investors alike. ETF speculation is already influencing sentiment, and historically, ETFs have boosted demand for the underlying asset in other markets. If an XRP ETF were to receive regulatory approval in the U.S. or other major jurisdictions, it could mark a new era of institutional participation.

Significant legal clarity emerged for XRP following the formal closure of the Securities and Exchange Commission's case against Ripple. This resolution concluded a nearly five-year dispute regarding the regulatory status of the digital asset, removing a substantial uncertainty that had impacted its ecosystem. Concurrent with the legal developments, Ripple executed its routine monthly release of XRP tokens from escrow on August 1st. Although characterized as standard protocol by Ripple CTO David Schwartz, the release of 1 billion tokens into circulation contributed to temporary market apprehension. Furthermore, anticipation surrounds potential Exchange-Traded Funds focused on XRP, with multiple applications reportedly under review by regulatory bodies; industry speculation suggests a significant probability of approval during the current year.

Market dynamics revealed substantial institutional activity within the XRP derivatives sector, characterized by notable shifts in open interest and funding rates. Despite these market adjustments, significant accumulation was observed among larger holders, with reports indicating addresses holding substantial quantities added hundreds of millions of tokens to their positions over a brief period. Analyst commentary in the wake of the SEC resolution offered diverse perspectives on future trajectories, reflecting generally positive sentiment regarding medium-term prospects. Predictions and technical assessments varied widely, incorporating various analytical frameworks and time horizons. A notable observation from market analysis highlighted XRP's perceived breakthrough above a historically significant resistance level, leading to suggestions of ambitious longer-term potential.