The Ripple Labs-related XRP token has reached a major milestone by rising to become the fourth-largest cryptocurrency by market value.
This amazing rise comes after weeks of market excitement caused by the election of Donald Trump as president, rumors about changes to regulations, and a good outlook on Ripple’s new projects.
A Meteoric Rise
The market value of XRP jumped over $136 billion, which is a 286% rise so far this year. In just 24 hours, the price of the token went up by more than 26%, going over $2 for the first time in almost seven years.
On Monday, XRP got as high as $2.50 before staying steady at around $2.40. These gains were bigger than those of Bitcoin (BTC) and Ethereum (ETH), which shows that investors are becoming more confident.
A report from Fox Business said that the New York Department of Financial Services (NYDFS) might accept Ripple’s RLUSD stablecoin, which caused the price to rise.
The token’s rise was helped by people’s anticipation of this regulatory approval, which solidified its place above Solana’s SOL and briefly passed Tether’s USDT in market value.
Catalysts for XRP’s Growth
Regulatory Developments
Since 2020, Ripple has been in a court battle with the U.S. Securities and Exchange Commission (SEC) over claims that it sold securities without being registered.
The most important moment came last year, when a federal judge said that selling XRP on public exchanges did not break any securities rules.
Even though the SEC filed an appeal, recent events, such as the fact that SEC Chair Gary Gensler is about to step down, have given people hope that the case will soon be over.
Chris Giancarlo, former Commodity Futures Trading Commission (CFTC) Chairman and a possible appointee in the incoming Trump administration, suggested that the SEC should drop its case against Ripple.
Along with Trump’s campaign promises to make the U.S. the “crypto capital of the planet,” he supports crypto. This is a big change from when Trump was running for president and was skeptical about digital assets.
Ripple’s RLUSD Stablecoin
The expected acceptance of Ripple’s RLUSD stablecoin is a strategic move to expand beyond cross-border payments, where Ripple already has a big share of the market.
RLUSD could be used for more things, like managing the budget, sending money internationally, and paying suppliers.
The company is making this move to strengthen its standing as a leader in blockchain-based financial solutions.
Brad Garlinghouse, CEO of Ripple, talked about how the industry is working together to get clear rules and policies that encourage innovation. He stressed how important it is for both parties to support the coin sector.
In a recent interview on CBS News’ 60 Minutes, he talked about how groups like Fairshake PAC work to get better rules put in place.
The Broader Cryptocurrency Landscape
Since Trump won the election, the cryptocurrency market has become more active. Bitcoin is still the leader with a market cap of nearly $1.89 trillion.
Ethereum is next, with $436 billion. XRP’s recent rise is a sign that more people think the new GOP-led Congress will be better for cryptocurrencies.
The market is even more excited now that Trump said in his campaign that he would encourage innovation and lower regulatory barriers for the crypto business.
Analysts think that if the U.S. changes its crypto policy, it could bring in investment from around the world and encourage more people to use blockchain technology.
Investor Sentiment
Many investors are aggressively buying up XRP, which shows how optimistic people are about the token.
Ripple’s legal wins and strategic expansions have only added to this excitement, giving the crypto community a sense of momentum.
Analysts in the market say that XRP’s price movement often matches larger industry trends. This means that the coin’s recent rise could be a sign of future growth in the whole sector.
The token has done very well, making it a choice among both individual and institutional investors.
Challenges Ahead
Despite the positive mood, there are still problems to solve. Even though Ripple’s case against the SEC is moving in its favor, it has not yet reached a final result.
Also, the cryptocurrency market is still very unstable, and governmental uncertainty in other places could change the path of XRP.
Ripple wants to start RLUSD and add more services, but this will only happen if the plan is carried out well and the market accepts it.
New projects and big players are all vying for control, which will test Ripple’s ability to come up with new ideas and grow.