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Is XRP A Better Hedge Against Inflation Than The US Dollar?
The US dollar index (DXY) has fallen by more than 10% year-to-date. Ripple’s XRP token, on the other hand, has seen a price increase of 4.81% year-to-date. XRP’s price even breached the $3 mark earlier this year in January before facing a dip. Many expect XRP will prove to be a better hedge against inflation than the USD.
Why XRP Could Be A Better Hedge Against Inflation Than The US Dollar
XRP also operates on a decentralized network. This means that there is no central authority. The dollar’s value could change according to US monetary policies. Factors like government spending or quantitative easing play a significant role in the US dollar’s value.
The popular crypto has also seen a sharp increase in demand for global cross-border payments. Several banks in Japan have adopted the XRP Ledger for cross-border settlements. We could see a similar pattern emerge in the US after the SEC clarifies the crypto regulatory scenario.
Also Read: Will XRP Be Affected by the SEC-Ripple Lawsuit?
**Also Read: Will XRP Be Affected by the SEC-Ripple Lawsuit?**There are also several spot XRP ETF applications awaiting approval at the SEC. There is a high probability that we will get an ETF sometime this year. Many have speculated that an XRP ETF could make a debut as early as July 2025.
Despite the coin being a top choice for many, it is unlikely to outshine the dollar anytime soon. The US dollar has a track record for being a safe haven in times of distress. With global tensions high, the dollar could once again prove to be the asset of choice for many around the world.