The price of XRP, Ripple's native cryptocurrency, has established itself as the third most capitalized cryptocurrency on the market.
XRP has seen exponential growth in recent weeks, trading at $2,71 at the time of writing. With this, Ripple’s native cryptocurrency has reached a six-year high and is less than 30% away from its current all-time high (ATH) price.
The meteoric rise has led XRP to displace USDT, the market's leading stablecoin, from the third place among the largest cryptocurrencies by capitalization, consolidating its position as one of the most valued digital currencies in the crypto ecosystem.
Following Donald Trump's election victory, XRP's price performance has been consistent and sustained, allowing Ripple's cryptocurrency to surpass its own psychological barrier of $2. XRP's market capitalization, driven by this price increase, has surpassed $155.000 billion, a milestone that not only reflects investor confidence but also its growing adoption in different sectors, from international payments to decentralized financial solutions.
What factors are driving XRP price surge?
XRP’s rise is particularly noticeable amid Bitcoin’s sideways price movement, which has been trading between $95.000 and $98.000 over the past week. However, while Bitcoin and other cryptocurrencies have fluctuated in price, XRP has maintained a steady upward trend, attracting the attention of investors and traders.
According to CoinMarketCap data, the rise in the price of XRP has been accompanied by an increase in trading volume, which is above $43.000 billion per day. This volume indicates a growing interest in Ripple’s cryptocurrency.
Source: CoinMarketCap
Regarding the factors that have contributed to this exponential growth, the following stand out: Gary Gensler resigns as chairman of the Securities and Exchange Commission (SEC) and the possible Approval of the stablecoin RLUSD Ripple by the New York Department of Financial Services (NYDFS).
Gensler's resignation from the federal agency has been welcomed by the crypto community. Gensler, who has been a vocal critic of cryptocurrencies and has led the regulatory fight against projects like Ripple, said he will officially leave the SEC on the same day as Trump's inauguration of the White House, January 20.
Overall, his departure from the SEC is being interpreted as a potential shift in the US regulatory stance towards cryptocurrencies, which could benefit Ripple and, by extension, XRP, as well as other crypto industry projects that have been hit by the regulator’s enforcement measures. For all these reasons, cryptocurrency users and investors see this move as a sign that regulatory pressure could ease in the US market, potentially opening the door to greater adoption and use of XRP and other crypto assets.
Furthermore, the Possible approval of the stablecoin RLUSD Ripple’s approval by the NYDFS is another key factor that has driven up the price of XRP. The RLUSD stablecoin, which would be backed by the US dollar, represents a significant opportunity for Ripple to expand its ecosystem and offer a stable and reliable payment solution. The approval of RLUSD, which is expected this week, would not only strengthen Ripple’s position in the stablecoin market but could also attract new users and partners to the XRP ecosystem.
Furthermore, the announcement of the approval of RLUSD has been welcomed by the crypto community, which sees this stablecoin as an alternative to USDT, which has been criticized for its lack of transparency in backing its assets. The entry of RLUSD into the market could displace USDT from its dominant position, which has already been reflected in the rise in the price of XRP.
XRP is rapidly scaling the crypto market
XRP has demonstrated an impressive ability to scale rapidly in the cryptocurrency market. In this bull cycle, Ripple’s cryptocurrency has outperformed several major coins, including Dogecoin and Binance Coin (BNB), before displacing Solana and eventually USDT. This meteoric rise not only reflects the strength of XRP, but also the confidence that investors and users have in the Ripple project.
The overtaking of Dogecoin and BNB was the first step in this climb. Dogecoin, a meme cryptocurrency that gained popularity thanks to the influence of figures such as Elon Musk, had achieved a significant market capitalization. However, XRP, with its focus on international payments and financial solutions, demonstrated greater strength and growth capacity, overtaking Dogecoin in a short time.
The next coin to fall was Binance Coin (BNB), the native cryptocurrency of the Binance platform. BNB has been one of the most popular cryptocurrencies in recent years, thanks to its wide utility within the platform. However, XRP managed to outperform BNB, consolidating its position as one of the most valued cryptocurrencies on the market.
Overtaking Solana was another important milestone. Solana, known for its high transaction speed and low fee, had gained massive popularity in the cryptocurrency market. However, XRP demonstrated greater adoption and growth, overtaking Solana and getting ever closer to USDT.
Finally, USDT’s displacement from the third spot among the top cryptocurrencies is a clear indicator of XRP’s strength. USDT, the market’s leading stablecoin, had maintained its dominant position for years. However, the growing demand for XRP and the potential approval of RLUSD have led Ripple’s cryptocurrency to overtake USDT, consolidating its position as the third-largest cryptocurrency on the market.
XRP: Garlinghouse and experts see a bright future
XRP's meteoric rise has sparked a number of opinions and analyses from experts and developers in the crypto ecosystem. Many see this development as an indicator that the Ripple project is on the right track and that XRP has significant growth potential in the future.
The SEC lawsuit against Ripple, which has been a major hurdle for the project, could come to an end under the new Trump administration. Gary Gensler’s resignation and the anticipated change in regulatory stance in the United States could facilitate a favorable resolution for Ripple, potentially triggering further adoption of XRP in the market.
Ripple CEO Brad Garlinghouse has mentioned on multiple occasions that XRP was the second-largest asset on the market before the SEC filed its lawsuit. Garlinghouse has expressed confidence that once the lawsuit is settled, XRP could regain its position and continue its growth.
In conclusion, the surge in XRP price and its displacement from USDT from the third spot in the cryptocurrency market are clear indicators of the strength and potential of Ripple’s cryptocurrency. With factors such as the possible approval of RLUSD and the change in regulatory stance, XRP seems to be in a favorable position to continue its growth and consolidate its position in the crypto market.
