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XRP has catapulted into the spotlight, overtaking stablecoin Tether (USDT) to become the third-largest cryptocurrency by market capitalization, now valued at $138.675 billion, per CoinMarketCap data.
This remarkable climb comes amidst a 30% daily price surge to $2.44 and an extraordinary 375% rally over the past month. The ascent is attributed to a combination of regulatory optimism, potential product launches, and broader market dynamics.
XRP’s growth has been bolstered by key developments, including reports that the New York Department of Financial Services (NYDFS) is nearing approval of Ripple's RLUSD stablecoin, with a rumored launch date of December 4. The potential launch is seen as a pivotal moment, further integrating XRP into the digital asset ecosystem.
Ripple has also benefited from the imminent departure of SEC Chair Gary Gensler, scheduled for January 2025. His exit has reignited speculation about the resolution of the SEC’s long-standing lawsuit against Ripple, which has shadowed XRP since 2020. Market optimism suggests that new leadership at the SEC may lead to settlements or reduced enforcement actions.
Investor interest has surged alongside filings for XRP-focused ETFs from notable firms such as 21Shares and Bitwise. These applications, coupled with Ripple's expanding partnerships and ecosystem advancements, indicate a broader institutional pivot toward XRP.
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BRN analyst Valentin Fournier warns, however, that this rally may be partly fueled by speculative leverage. "According to CoinGlass, open interest in XRP derivatives has soared 30% in just 24 hours, reaching $4.2 billion. This sharp rise could signal heightened market volatility, with the potential for short-term corrections," Fournier said.
The recent price surge is also reminiscent of XRP’s performance during prior market booms, including its record highs in 2018, when it hit $3.3. With renewed momentum and regulatory clarity on the horizon, Ripple’s future appears poised for significant transformation.
