XRP (CRYPTO: XRP), the cryptocurrency formerly known as Ripple, has been one of the hottest tokens. The crypto has surged 287% over the last month.

The incredible gains have pushed XRP’s trade capitalization up above $139 billion, and the token now ranks as the globe’s fourth largest crypto by trade cap — trailing only Bitcoin, Ethereum and Tether. But while XRP now seems to be on the ascent, there were long periods when uncertainty surrounding the cryptocurrency kept its evaluation at much lower levels. Investors who were willing to embrace high levels of hazard and hold for the long term wound up scoring large wins.

A $10,000 pool in Ripple five years ago would have generated huge returns

While XRP has seen some large swings over the last half-decade of market activity, the token’s recent gains have been incredible. If you had invested $10,000 in the token five years ago and held on to your position, you’d have a massive winner on your hands.

With gains of 987% over the last five years, a $10,000 initial pool in Ripple five years ago would now be worth more than $108,000. The cryptocurrency has recently seen explosive gains thanks to expectations that the incoming Trump administration will back the crypto industry and make a more favorable regulatory backdrop. This would be a particularly beneficial advancement for XRP.

The token has seen its evaluation pressured by an ongoing lawsuit brought against Ripple Labs by the stocks and bonds and trade fee (SEC), which alleges that XRP was offered as a safety rather than a crypto token. With the transformation in presidential administration and current SEC chief Gary Gensler set to step down from his position, the lawsuit issue could soon be a issue of the history.

Investors should way XRP with the understanding that the cryptocurrency is a high-hazard, high-reward play with a highly speculative outlook, but political and regulatory dynamics appear to be shifting in the token’s favor.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum and XRP. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content associate offering monetary information, analysis and commentary designed to assist people receive control of their monetary lives. Its content is produced independently of USA TODAY.

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