XRP’s recent price surge can be largely attributed to Ripple’s announcement of significant upgrades to the XRP Ledger (XRPL), which have stirred considerable enthusiasm within the crypto community. These developments are set to revolutionize the blockchain, enhancing its functionality and broadening its appeal.

Ripple CEO Brad Garlinghouse has disclosed plans to introduce a groundbreaking programmability feature to the XRPL, enabling the implementation of smart contracts on the blockchain. This enhancement is poised to unlock transformative capabilities, including the seamless integration of Non-Fungible Tokens (NFTs), Automated Market Makers (AMMs), and decentralized exchanges (DEXs). Such advancements are expected to significantly elevate the utility of XRP, fostering increased demand as developers and users flock to leverage these new functionalities.

Further strengthening the potential impact of these upgrades is Ripple’s strategic partnership with Futureverse, an AI and Metaverse technology company. This collaboration aims to securely store digital assets on the XRPL network, ensuring robust security measures. Futureverse has already embraced the XRPL NFT standard on the Root Network, a side chain under development by Ripple to support these new programmability features. This side chain is anticipated to be fully operational by 2025. The use of XRP as gas within this network underscores its growing importance within the broader ecosystem.

The excitement surrounding these imminent developments is likely fueling the current upward momentum in XRP’s price. As these upgrades are implemented and more projects harness the enhanced capabilities of the XRPL, demand for XRP is expected to rise further. This could potentially lead to continued price appreciation in the future.

Looking ahead, XRP’s price trajectory will likely be shaped by a combination of recent innovations and overall market dynamics. Over the past year, XRP has experienced a 13% price increase. While this growth is positive, it indicates that XRP has underperformed compared to 66% of the top 100 crypto assets. Notably, XRP has trailed behind major players like Bitcoin and Ethereum, despite exhibiting strength by trading above the 200-day simple moving average. This bullish indicator suggests a continued upward trend in the near term.

XRP’s performance over the past month underscores its potential for further gains. With 16 green days out of the last 30 (53%), XRP has demonstrated consistent positive movement. This upward trend is supported by high liquidity, given its substantial market capitalization. This stability may attract more investors, especially as Ripple continues to roll out its XRPL upgrades, potentially driving increased demand for XRP.

However, it’s important to note that XRP remains down 85% from its all-time high. This highlights significant room for recovery but also underscores the challenges it faces in reclaiming previous levels. Additionally, the yearly inflation rate of 6.18%, with 3.27 billion XRP created in the last year, could exert downward pressure on its price if demand does not keep pace with supply.

While XRP exhibits strong indicators of potential growth—trading above key moving averages, consistent positive price action, and major upcoming upgrades—the market’s response to these developments will be critical. If Ripple’s innovations successfully drive increased adoption and demand, XRP could see substantial price appreciation. However, it must overcome its recent underperformance relative to other top crypto assets to fully capitalize on its potential.