XRP, the cryptocurrency closely associated with Ripple, has surged in market capitalization, achieving a meteoric rise to multi-year highs in its price.
XRP has climbed to become the world’s third-largest cryptocurrency, surpassing Tether (USDT). This comes on the back of a more than 20% increase in the past 24 hours, pushing its market capitalization to $140 billion, according to CoinGecko data. The token’s price soared to $2.48 on Sunday night, its highest level since January 2018.
XRP’s Recent Performance
XRP’s ascent was marked by it overtaking Solana (SOL) over the weekend, securing its position as the fourth-largest cryptocurrency before surpassing USDT.
The token’s price has soared by more than 300%, driven by a broader rally in the cryptocurrency market following Donald Trump’s victory in the U.S. presidential election. Optimism surrounding a pro-cryptocurrency administration has fueled speculative enthusiasm, propelling the overall cryptocurrency market capitalization to a record $3.4 trillion and pushing Bitcoin to the long-anticipated $100,000 threshold.
Factors Driving XRP’s Surge
Several factors have contributed to XRP’s recent rise, including:
- Regulatory Optimism: Expectations for a more transparent regulatory framework for digital assets in the U.S. under a Republican administration.
- Potential ETF Approval: Anticipation of the approval of the first XRP-based exchange-traded fund (ETF) in the U.S. market.
- Stablecoin Development: Reports of potential authorization of Ripple’s new stablecoin, RLUSD, by the New York Department of Financial Services last week, which likely fueled XRP’s price surge.
XRP’s Performance Since Trump’s Victory
Before the U.S. election, XRP’s market capitalization hovered below $30 billion, with its price trading around $0.50. The token had remained under the $1 level since 2021.
Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) has also played a pivotal role in shaping market sentiment. The SEC sued Ripple in 2020, alleging unregistered securities offerings. While a federal judge partially ruled in Ripple’s favor in 2023, determining that XRP does not always qualify as a security, the SEC has continued its push for stricter classification and recently appealed the ruling.
Political Support Boosts Market Sentiment
Trump’s support for cryptocurrencies throughout his election campaign has provided a significant boost to the sector. He pledged to end what he called the “Democratic administration’s hostility” toward digital assets, promote clearer regulations, and replace SEC Chairman Gary Gensler, who is widely viewed as unfavorable to the crypto industry.
XRP’s price surpassed the $1.49 threshold following Gensler’s recent announcement that he will step down from the SEC in January, raising hopes for a more crypto-friendly regulatory environment.
