XRP recently overtook Tether (USDT) in market capitalization, becoming the third-largest cryptocurrency, behind Bitcoin and Ethereum. As of Dec. 1, 2024, XRP’s market cap stood at $141.8 billion, surpassing USDT’s $134.5 billion. The price of XRP surged by 30% within 24 hours, trading at $2.46, and has seen a 364% increase over the past month. This marked a significant shift as XRP overtook Solana in market cap over the weekend.
Several factors contributed to XRP’s rise, particularly Ripple’s ongoing battle with the SEC, and the possible approval of its RLUSD stablecoin by the New York Department of Financial Services (NYDFS). Sources indicate that the NYDFS may approve the stablecoin on Dec. 4, allowing Ripple to launch RLUSD and integrate it into its RippleNet payment system. This is expected to strengthen Ripple’s position in cross-border payments, potentially offering XRP more stability.
Another contributing factor is the expected leadership change at the SEC. Gary Gensler, the current chairman, has announced plans to step down in January 2025, raising hopes that a new SEC leadership might take a friendlier stance toward Ripple. The SEC lawsuit against Ripple, which began in December 2020, has been a significant hurdle for XRP, but many believe that a new leadership could result in a more favorable outcome, such as a settlement or dismissal of the case.
XRP has gained momentum from its January 2018 all-time high of $3.40 but remains about 27.6% below that peak. Despite the recent surge, some analysts warn that it could be short-lived and recommend caution for new buyers entering the market. However, the potential regulatory shifts and Ripple’s plans for its RLUSD stablecoin have renewed investor confidence in XRP’s future.
In addition to the RLUSD project, Ripple is also working on launching exchange-traded funds (ETFs) for XRP, which could open the door for traditional investors. While no XRP ETFs have been approved yet, several asset managers have filed for approval, and the market is awaiting a regulatory decision.
Ripple’s surge and the increasing support for XRP from both regulatory shifts and its expanding ecosystem suggest a promising future for the cryptocurrency. As Ripple continues to develop its stablecoin and other financial products, XRP’s position in the market is expected to strengthen, though its future remains tied to the outcome of ongoing legal and regulatory developments.