According to data from the crypto ranking platform CoinGecko , XRP is up 511% yearly. In Q4, 2024 alone, XRP market capitalization gained 246%, according to a recent report by Messari.
XRP began a bull run last November on expectations of a more crypto-friendly stance; for years, XRP prices were muted as a result of the Ripple SEC lawsuit initiated in 2020, which resulted in Ripple’s 2023 legal victory. Last August, Ripple was ordered to pay a $125 million fine related to sales to institutional investors, effectively ending the suit.
Retail and large holder participation also picked up with on-chain data signaling whale accumulation. According to Messari, in Q4, 2024, new addresses increased 382% to 507,000, suggesting the onboarding of new users.
The anticipation surrounding the XRP ETF has also boosted XRP prices. Ripple Labs president Monica Long earlier remarked that an XRP ETF might "soon be a reality." Most recently, Grayscale Investments has applied with the SEC to convert its XRP Trust into an ETF for listing on the New York Stock Exchange.
Aside from Grayscale, several firms have applied for XRP-based ETFs, demonstrating a rising institutional appetite for structured investment products in XRP. Purpose Investments, a Canadian asset management firm, has filed a preliminary prospectus for an XRP spot ETF.
Wisdom Tree filed an S-1 in December to launch an XRP ETF, following Bitwise, Canary and 21Shares' submissions in October and November. RLUSD, Ripple's USD-pegged stablecoin, was also launched in December, marking a significant milestone.
How much higher can it go?
As a result of the spike, XRP surpassed Tether (USDT), among others, to become the third-largest cryptocurrency by market capitalization, trailing only Bitcoin and Ethereum. At the time of writing, XRP was down 1.28% in the last 24 hours to $3.09 with a current market capitalization of $178.15 billion.
Back in 2018, XRP witnessed a similar rise, briefly surpassing ETH in market capitalization when both coins were worth roughly $22 billion. Is it possible that this might happen again?
Only time will tell — but XRP has further room for growth. ETH has a market capitalization of $404 billion, which is more than twice that of XRP.
In terms of price, eyes are on XRP breaking past its recent high of $3.4 and reaching $4 or possibly $5. Meanwhile, the daily SMA 50 at $2.6 has held up as XRP support since November 2024.
