XRP's market capitalization reached a new all-time high (ATH) by surpassing $193.000 billion, consolidating its position as the third most valuable cryptocurrency on the market, only behind Bitcoin and Ethereum.
XRP has left USDT, the largest stablecoin in the crypto industry, far behind in terms of market valuation. According to data from CoinMarketCap, Ripple’s cryptocurrency saw a 16% increase in price in the past few hours, pushing its market capitalization to new all-time highs.
Data from the platform shows that XRP is priced at around $3,35, while its market cap briefly touched $193.000 billion, growing 28% faster than its closest competitor, USDT.
Source: CoinMarketCap
This milestone comes amid a general recovery in digital markets and expected regulatory changes under Donald Trump's leadership in the United States.
XRP's bullish momentum
In recent days, the cryptocurrency market has seen a remarkable recovery. Bitcoin, the leading cryptocurrency, was trading close to $100.000 after an 8% weekly price recovery. Ethereum, the second largest cryptocurrency in the market in terms of market capitalization, approached $3.500 after weeks of volatility. However, XRP has stood out for its exceptional performance among the major cryptocurrencies, with a weekly growth of almost 50%, driven by a combination of technical, regulatory and political factors.
Source: CoinMarketCap
What drives Ripple’s price?
One of the key catalysts for Ripple’s price has been the expectation of a shift in US regulatory policy. Gary Gensler, who led the Securities and Exchange Commission (SEC) for the past few years, is set to step down from his post on January 20, 2025, the same day Donald Trump is inaugurated as President of the United States.
La Gensler's imminent departure from the SEC marks the end of an era characterized by the agency's hardline stance on cryptocurrencies. Gensler was an outspoken critic of the sector and led a legal battle against Ripple, accusing the company of selling XRP as an unregistered security. Now, with his departure, SEC is expected to take a more favorable stance towards crypto innovation.
As mentioned, this change coincides with the beginning of Donald Trump's new term as President of the United States, who has publicly expressed his support for the blockchain industry and has promised to promote a clearer and more friendly regulatory framework.
The SEC's case against Ripple
The SEC case against Ripple, which has been one of the most closely watched episodes in the crypto industry, is another factor driving XRP higher. The agency filed its appeal on January 15, arguing that XRP should be classified as a security. However, Ripple has responded strongly, calling the appeal “a rehash of already failed arguments.”
At X, Stuart Alderoty, Ripple’s chief legal officer, said the case against the blockchain company will likely be dropped by the next administration and that, at present, the agency’s lawsuit against Ripple “is just noise.”
“A new era of pro-innovation regulation is coming, and Ripple is thriving”, Alderoty said.
This legal case has been a turning point for XRP. In July 2023, a federal judge ruled that sales of XRP on exchanges did not constitute a securities offering, which fueled a significant rally in the cryptocurrency’s price. Since then, Ripple has gained ground in the market and strengthened its position as one of the most innovative companies in the cryptocurrency and cross-border payments sector.
The expectation is that, with the new administration at the SEC, the case against Ripple will reach a favorable resolution, which could eliminate one of the main uncertainties that weighed on XRP. This scenario has generated optimism among investors, who see Ripple as a key player in the mass adoption of blockchain in the traditional financial system.
The macroeconomic and political context
XRP’s rally is also influenced by the current macroeconomic and political context. Bitcoin’s recovery has generated a knock-on effect on the rest of the crypto market according to several analysts. In addition, the expectation of a more flexible monetary policy in the United States has boosted the appetite for risk assets, including cryptocurrencies.
On the other hand, the beginning of Donald Trump's new term has raised expectations of a change in the country's regulatory policy. Trump has been a proponent of blockchain technology and has promised to promote a regulatory framework that encourages innovation and competition, a stance that contrasts sharply with that of the previous administration, and which could boost innovation in the sector.
Ripple Towards New All-Time Highs
With a market capitalization of over $190.000 billion, XRP is consolidating its position as one of the most important cryptocurrencies in the digital ecosystem. Its technology, designed to facilitate fast and cheap cross-border payments, has gained followers among financial institutions and companies around the world. In addition, Ripple has demonstrated a remarkable ability to adapt to regulatory challenges and continue to innovate. The company has established strategic alliances with banks and remittance companies, which has strengthened its position in the market.
All of this could quickly push the cryptocurrency’s price towards new all-time highs. According to data from CoinMarketCap, XRP is just 13% away from its previous ATH, seen in January 2018.
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