XRP Hits 7-Year High as FTX Prepares $1.2 Billion Repayment

XRP has surged to a 7-year high, reflecting bullish momentum, while the bankrupt crypto exchange FTX has announced plans to repay $1.2 billion, potentially boosting market liquidity.

According to CoinTelegraph on January 18, XRP climbed to $3.20 on January 15, its highest level since 2018, driven by optimism surrounding President-elect Donald Trump’s pro-crypto stance and regulatory clarity. Currently, XRP is trading at $3.09 after a slight correction, up 32% for the week.

XRP’s Legal and Regulatory Tailwinds

XRP’s rally persists despite the SEC’s appeal of a July 2023 ruling in favor of Ripple Labs. The appeal challenges the classification of XRP sales to retail investors as non-securities. However, the market remains confident in Ripple’s legal position and the prospects for regulatory clarity.

Ryan Lee, Chief Analyst at Bitget Research, attributed XRP’s strength to "investor optimism and anticipation of improved regulatory conditions."

FTX’s $1.2 Billion Repayment Plan

FTX has announced plans to repay $1.2 billion to users who lost access to funds following its 2022 bankruptcy. Customers have been notified to submit repayment requests by January 20, with those holding claims below $50,000 expected to receive payments shortly thereafter.

Sunil, a member of the FTX Customer Ad-Hoc Committee, confirmed that the repayment process would begin after January 20, potentially restoring partial confidence in the broader crypto market.

Hyperliquid Airdrop and AI Token Growth

Hyperliquid’s $7.5 billion decentralized airdrop, the largest in crypto history, marks a shift away from centralized token listings. The project excluded venture capital and early investors, distributing tokens purely through decentralized methods.

Meanwhile, AI-related tokens are experiencing rapid growth. Bitget CEO Gracy Chen predicts the AI token market will reach $60 billion by 2025, driven by applications in trading and wallet management. The AI agent market grew 222% in Q4 2024, reaching $15.5 billion.

DeFi and Altcoin Momentum

The DeFi sector also displayed strong performance, with most major cryptocurrencies gaining this week. Solana-based meme coin Fartcoin led the market, surging 58%, followed by XDC Network (XDC) with a 49% increase.

With XRP at multi-year highs, FTX’s repayment plans underway, and innovative projects reshaping the market, the crypto industry continues to build momentum amid regulatory shifts and technological advancements.