🔥 XRP Hits New Highs: What’s Behind Ripple’s Stunning Rally?
posted 2 Dec 2024
XRP’s meteoric rise caused a stir in the crypto community. The cryptocurrency surpassed major players like Solana and Tether, even briefly securing the third spot in market capitalization. What’s driving this growth?
According to CoinMarketCap, Ripple’s cryptocurrency XRP surged by 28% in the past 24 hours and more than 75% over the week, hitting a price of $2.40. Its total market capitalization has now reached nearly $134 billion.
XRP: The Sleeping Giant Awakes. Source: Coinmarketcap
Crossing the psychological threshold of $2 for the first time in six years marks a significant milestone after prolonged stagnation since December 2020, when the SEC initiated its legal battle against Ripple Labs.
Analytics platform Coinglass also highlights a sharp increase in trading activity and a positive ratio of long to short positions on exchanges, reflecting growing investor confidence in XRP.
Investor Optimism Fuels XRP Growth. Source: Coinglass
What’s Driving Ripple’s Remarkable Growth?
One of the primary factors behind XRP’s surge is the anticipation of regulatory shifts in the United States. The nearly certain departure of Gary Gensler, the SEC chair known for his strict stance on cryptocurrencies, has created optimism. Investors are pricing in hopes that a new SEC leader will adopt a more favorable approach to the crypto industry, potentially resolving the long-standing legal battle between the SEC and Ripple.
Additionally, Ripple’s ongoing efforts to establish XRP as a legitimate digital asset have bolstered its standing. Despite the prolonged legal conflict with the SEC, XRP’s pro-banking positioning and the robust XRPL technology have remained strong pillars of support.
Another significant factor driving XRP’s growth is the prospect of a spot ETF approval in the U.S. Several major investment firms, including Bitwise, Canary Capital, and 21Shares, have already filed applications for an XRP ETF. The launch of such a product would make XRP more accessible to institutional investors, potentially leading to a substantial influx of capital—similar to the successful BTC and ETH ETF launches.
Nate Geraci, president of ETH Store, believes that the success of investment products based on XRP will encourage other issuers to develop similar offerings.
If these positive trends continue, XRP is well-positioned to solidify its status among the top cryptocurrencies, perhaps even challenging BTC and ETH in market dominance. After all, it has already left its other competitors behind.
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