XRP, the cryptocurrency that has long been battered by
regulatory headwinds, is now leading the charge in an ongoing crypto market
rally thanks to recent positive developments, including the anticipated exit of
SEC Chair Gary Gensler.
XRP now ranks the sixth largest cryptocurrency after
its market cap soared to more than $80 million, according to CoinMarketCap. In
the past day alone, the digital assets have gained 27% and 66% on the daily and weekly charts, respectively.
On the monthly chart, XRP’s surge is even more dramatic.
The token, which aims to facilitate efficient cross-border payments, has jumped
174% in the past month. Its price moved from $0.5250 to trade at $1.44 at the time of this publication.
Why XRP is Rising
So what is behind the surging prices? One of the
factors could be the optimism around more friendly crypto regulations in the US
coupled with Ripple’s legal triumph over the SEC, Coindesk reported.
For years, Ripple fought allegations from the SEC
claiming XRP was sold as an unregistered security. The resolution of this
high-stakes case in 2024 not only exonerated Ripple but also ignited interest
in XRP, pushing the token’s market capitalization.
Besides that, Gary Gensler, who has since adopted what is considered stringent regulations for digital assets, will leave office in
January. His departure is widely viewed as paving the way for regulatory reform
favoring cryptocurrency innovation.
Donald Trump’s 2024 presidential victory has further
fueled enthusiasm. Known for his pro-crypto stance during his previous
administration, Trump’s return to office is raising hopes for policies that
support blockchain technology and digital assets.
Futures Markets
XRP has dominated trading activity on South Korean
exchanges, even surpassing Bitcoin and Dogecoin in volume, Coindesk reported. XRP
futures have also reached high levels, with open interest surpassing $2
billion.
Additionally, there is speculation about XRP-based exchange-traded funds (ETF) in the US. If approved, such a product could reportedly
push XRP into mainstream financial markets and attract institutional investors.
This article was written by Jared Kirui at www.financemagnates.com.
