The momentum for the market's hottest cryptocurrency continued over the weekend and into early trading on Monday. XRP (XRP 11.97%) continues to be the biggest name and is now the third largest cryptocurrency behind Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
As of 12:30 PM ET, XRP is up 36% in the past 24 hours alone and 55% since market close on Friday. Chainlink (LINK 22.94%) is up 17.6% in the past 24 hours and 22.6% since Friday. Hedera (HBAR 36.90%) is up 45.6% over the past day and is up 87.9% since the last market close.
XRP’s momentum continues
In the cryptocurrency market, if there is momentum, virtual currencies can rise rapidly in a short period of time. This is what is happening with XRP, based on speculation that the new Trump administration will be more favorable toward cryptocurrencies.
This is especially meaningful for XRP, which has spent most of the past four years battling regulators in court. Ironically, Trump was president when these lawsuits began.
The XRP blockchain is built to disrupt the traditional financial system, so it could be a win for investors if it is allowed to flourish, but it remains to be seen whether that will happen or what its value will be. It is unclear how it will be returned to token holders in line with the current situation. Market capitalization is $164 billion.
Chainlink goes to Europe
21X today announced that it is using the Chainlink standard for tokenized securities and payment systems in Europe. Tokenization of securities is one of the ways blockchain has the potential to disrupt traditional finance, and this is a major step toward further tokenization in one of the most regulated places in the world.
Such utilities are growing for blockchain-backed cryptocurrencies, but it is not yet clear whether much value will flow back to token holders in the long term.
Great migration of Hedera
The rise in Hedera's value is a sign that analysts are discovering that large holders are accumulating the token and moving it off exchanges, and may be considering holding it for the long term. One reason is that
Another point of speculation is the news that Hashgraph board member Brian Brooks has been named as a potential leader of the Securities and Exchange Commission (SEC). Although he doesn't seem like a strong candidate, having someone close to the president's ear is considered a good thing for the crypto industry at this point.
Cryptocurrency bull market continues
The recent rapid movements in cryptocurrencies are reminiscent of the second half of 2021, when the bull market was hot. Investors fear missing out on the next trade, and mere speculation and momentum will cause the token to rise rapidly.
Much of the recent movement has been driven by speculation that President Trump's second term could be good for cryptocurrencies, as it would replace the hostile regulators installed over the past four years. There is.
While the regulatory environment may be more favorable, remember that cryptocurrencies need to be valuable for purposes other than value-producing transactions. Currently, most utility transactions are done in stablecoins rather than native cryptocurrencies, so blockchain could become more valuable in the future, even if the cryptocurrencies themselves are not. That's what I think. For now, I'm being cautious. This is because FOMO (fear of missing out) is rampant and historically it is a bad time to be a cryptocurrency buyer.
Travis Hoium has a position in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Chainlink, Ethereum, and XRP. The Motley Fool recommends Hedera Hashgraph. The Motley Fool has a disclosure policy.
