XRP Soars to Third-Largest Crypto After Trump’s Victory, Surpassing Tether and Solana
XRP, the cryptocurrency tied to Ripple Labs, has made an extraordinary comeback, soaring to become the third-largest cryptocurrency by market capitalization. The token surged as much as 15% on Monday, reaching $2.50, with its market value topping $137 billion. This remarkable growth marks a dramatic shift since early November when XRP’s market cap was just under $30 billion. So, what sparked this surge? The answer lies in the aftermath of the U.S. presidential election.
Donald Trump’s victory in the election has sent ripples through the cryptocurrency world, igniting a wave of speculative excitement. Traders and investors are optimistic that Trump's pro-crypto stance will help create a favorable regulatory environment for digital assets in the U.S. XRP’s rally is a testament to the shift in market sentiment, as its market cap has now surpassed both Tether (USDT) and Solana, two significant players in the space.
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The rapid rise of XRP follows several key factors. First, Ripple Labs, the company behind XRP, has been embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC) since 2020, with the agency accusing Ripple of unlawfully raising money by selling XRP without registering it as a security. However, with Trump’s win, the political atmosphere is changing. On the campaign trail, Trump had made it clear he would replace SEC Chairman Gary Gensler, who has been a central figure in these legal challenges. The expectation that Gensler would step down in January has further fueled the optimism surrounding XRP.
Another contributing factor to XRP's resurgence is its close proximity to its all-time high. In January 2018, the token reached $3.40, a level it hasn’t seen since. While XRP is currently 27% below that peak, its recent growth is a significant step in reclaiming its former glory. This is especially notable after XRP’s market value was decimated in the wake of the SEC’s lawsuit in late 2020, when its price plummeted from around $0.50 to as low as $0.17. At that time, the company lost billions in market cap, but now it is back and thriving.
As XRP continues its climb, it’s also benefiting from Ripple’s broader business expansion. Ripple has been focusing on launching new initiatives, such as developing a stablecoin and increasing institutional interest. Notably, major asset management firms like Bitwise and Canary Capital are pursuing approval for XRP-based exchange-traded funds (ETFs), and Ripple is also seeking approval from the New York Department of Financial Services for its RLUSD stablecoin, further cementing its place in the growing crypto market.
So, XRP’s meteoric rise in value is a reflection of changing market dynamics, political developments, and ongoing legal progress. With its market cap now exceeding $140 billion, it has firmly established itself as a leading cryptocurrency. As the industry continues to evolve, Ripple and XRP appear poised for even greater growth, with a favorable regulatory environment on the horizon.
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