XRP surged to new heights, surpassing Solana (SOL) and briefly overtaking Tether (USDT) to become the fourth-largest cryptocurrency by market capitalization.
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The rally was driven by political shifts, favorable regulatory updates, and rising investor optimism.
XRP Tests Top 3 Position
XRP increased by over 70% in the past week, reaching $2.49 early on Monday, December 2—a level not seen since early 2018. The coin’s market value briefly climbed above $142 billion, surpassing the world’s largest stablecoin, Tether (USDT).
XRP tested the $2.5 mark, its highest price in nearly seven years. Source: CMC
Although XRP’s price corrected later on Monday, it firmly secured its position among the top five largest cryptocurrencies, surpassing the “Ethereum killer” Solana with a market capitalization of $107.8 billion.
At the time of writing, XRP is trading near $2.40, boasting a 286% year-to-date gain.
What Powered the XRP Rally?
The rally was primarily driven by expectations that Ripple’s RLUSD stablecoin would soon gain approval from the New York Department of Financial Services (NYDFS), with confirmation anticipated in early December.
Adding to the momentum was speculation over a potential resolution in Ripple’s ongoing legal battle with the SEC, which further bolstered positive sentiment.
Investor confidence was also lifted by the resignation news of SEC Chair Gary Gensler, with many anticipating a more crypto-friendly approach under a new Trump administration. Since Trump’s election victory, the crypto market has gained approximately $1.2 trillion in value.
Finally, XRP’s surge reflects broader market dynamics, as Bitcoin’s dominance topped, opening opportunities for altcoins to shine.
Potential Short-Term Correction
As XRP’s open interest surged by 37%, experts are forecasting heightened short-term volatility. The increased leverage indicates that traders are positioning aggressively for potential price swings, which could intensify market fluctuations in the coming days.
CryptoQuant analyst Maarten Regterschot noted that similar patterns in the past led to a 17% price correction for XRP.
On the Flipside
- Regulatory uncertainty persists, with a prolonged SEC appeal potentially weighing on XRP’s price momentum.
- XRP-based institutional products like ETFs continue to face significant hurdles in the US.
Why This Matters
Ripple’s legal progress has fueled optimism in the altcoin market, enhancing investor confidence. A favorable outcome in Ripple’s legal battles could position the company as a bridge between cryptocurrency and traditional finance, further advancing crypto’s mainstream integration.
Find out more about the XRP surge:
XRP Price Surge of 15%: Golden Cross Sparks All-Time High Hype
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Ripple’s XRP and Stellar’s XLM Link: Why Do They Move in Sync?
