XRP ($XRP) has made headlines with a massive 20% surge in the last 24 hours, pushing its market value to $140 billion.
This brought it close to overtaking Tether ($USDT), currently at $141.8 billion, as the third-largest cryptocurrency by market capitalisation.
Several key factors have powered $XRP’s impressive rise. A major boost came from the announcement the current Chair of the US Securities and Exchange Commission (SEC), Gary Gensler, plans to step down in January.
This news has fuelled hopes of a resolution to Ripple’s ongoing legal battle with the SEC. The regulator had sued Ripple in 2020, accusing the company of raising $1.3 billion through unregistered sales of $XRP.
The head of research at Presto Research, Peter Chung, thinks Gensler’s departure could ease the tension. “A new SEC leader might settle or drop lawsuits, including the one against Ripple”, Chung explained.
Another driver of $XRP’s surge is the anticipation around Ripple’s upcoming stablecoin, RLUSD. Reports suggested that the New York Department of Financial Services is close to approving the stablecoin.
Ripple has announced that once RLUSD is live, it will be used alongside $XRP in its cross-border payments solution.
This potential approval is seen as a significant step for enhancing $XRP’s utility and liquidity.
Outpacing other cryptocurrencies
$XRP’s recent performance has been extraordinary, far exceeding gains seen in other top cryptocurrencies. Over the past month, $XRP has skyrocketed by 352%. It is now trading at $2.28, up over 20% in just 24 hours and 70% in the past week.
In contrast, Bitcoin ($BTC) gained only 1.28% during the same period, reaching $97,862, while Ethereum ($ETH) saw a 0.68% increase to $3,721. Solana, meanwhile, dipped slightly by 0.96% to $235.84.
$XRP’s rise has been supported by strong trading activity, particularly in South Korea. On Upbit, one of the country’s largest crypto exchanges, $XRP trading reached $3.7 billion in the last 24 hours, making up 27.6% of the platform’s total trading volume.
On another South Korean exchange, Bithumb, $XRP accounted for 32% of all trades, with $1.2 billion in volume.
Even on Binance, the world’s largest exchange, $XRP trading made up 10% of activity, surpassing Bitcoin, which accounted for just over 7%.
$XRP’s strong momentum is evident across longer periods as well. It has gained 55% in the past week and a stunning 105.6% in the past two weeks.
What’s next for XRP?
The future looks promising for $XRP, with several developments on the horizon. Ripple is reportedly preparing to launch RLUSD as early as 4 December, though the company has yet to confirm this.
If approved, RLUSD could further boost Ripple’s ecosystem and solidify its position in cross-border payment solutions.
There is also growing speculation about the possibility of $XRP-based exchange-traded funds (ETFs). Major asset managers, including 21Shares, Canary Capital, and Bitwise, have filed applications for spot XRP ETFs.
If these funds gain approval, they could attract more institutional investment into $XRP.
The broader crypto industry is also seeing calls for regulatory reforms. The former Chair of the US Commodity Futures Trading Commission, Chris Giancarlo, has urged regulatory agencies to drop several cases against crypto firms, including Ripple.
In a recent interview with Fox Business, Giancarlo stated, “It’s time for regulatory agencies to drop a lot of these cases”. When asked specifically about the Ripple lawsuit, he added, “I think they should”.
As $XRP’s legal and regulatory outlook improves, the cryptocurrency is gaining more institutional interest and investor confidence.
Analysts believe that if the current momentum continues, $XRP could soon surpass Tether to become the third-largest cryptocurrency.
