XRP recently overtook Tether (USDT) in market capitalization to become the third largest cryptocurrency behind Bitcoin and Ethereum. As of December 1, 2024, XRP's market capitalization was $141.8 billion, surpassing USDT's $134.5 billion. XRP price soared 30% in less than 24 hours to trade at $2.46, rising 364% in the past month. This marked a significant shift as XRP overtook Solana in market capitalization over the weekend.
There are several factors contributing to XRP's rise, most notably Ripple's ongoing battle with the SEC and the possible approval of the RLUSD stablecoin by the New York Department of Financial Services (NYDFS). According to sources, NYDFS may approve the stablecoin on December 4th, allowing Ripple to launch RLUSD and integrate it into the RippleNet payment system. It is expected that this will strengthen Ripple's position in cross-border payments and potentially bring further stability to XRP.
Another factor is the expected leadership change in the SEC. Current chairman Gary Gensler has announced plans to step down in January 2025, raising hopes that the new SEC leadership will take a more friendly stance toward Ripple. The SEC lawsuit against Ripple that began in December 2020 has been a major hurdle for XRP, but many believe new leadership could lead to a more favorable outcome, such as a settlement or dismissal of the lawsuit. I believe.
XRP has gained momentum from its all-time high of $3.40 in January 2018, but remains about 27.6% below that peak. Despite the recent surge, some analysts have warned that it may be short-lived and advised new buyers entering the market to be cautious. However, potential regulatory changes and Ripple's plans for the RLUSD stablecoin have renewed investor confidence in the future of XRP.
In addition to the RLUSD project, Ripple is also working on launching an exchange-traded fund (ETF) for XRP, which could open the door to traditional investors. Although no XRP ETF has been approved yet, multiple asset managers have applied for approval and the market is awaiting regulatory decisions.
Ripple’s meteoric rise and growing support for XRP due to regulatory changes and an expanding ecosystem suggest a promising future for the cryptocurrency. As Ripple continues to develop stablecoins and other financial products, XRP's position in the market is expected to strengthen, but its future remains subject to ongoing regulatory developments.
