Ripple’s XRP Reaches $2, Flipping USDT and SOL in Market Cap

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As an experienced crypto investor with a knack for spotting trends and navigating market volatility, I find the recent surge of XRP truly intriguing.

The crypto market is abuzz after witnessing a seismic shift. XRP, the powering token for the Ripple ecosystem, surged past the $2 mark, cementing its position as the third-largest cryptocurrency by market capitalization.

Recently, XRP’s market capitalization surpassed $135.37 billion, making it greater than both USDT stablecoin ($134.17 billion) and Solana ($108.01 billion). This development has sparked discussions about its possible challenge to Ethereum‘s current standing.

XRP Ascends to Crypto Top 3, Beats USDT, SOL

Currently, XRP is being exchanged for approximately $2.37, marking a significant surge of 25.57% from its opening on Monday.

Cryptocurrency believers anticipate that its potential growth path might one day position it alongside Ethereum (ETH), currently worth approximately $441.46 billion. Notably, crypto advocate Amelie brought attention to a recent conversation between the founders of Cardano and Ripple, Charles Hoskinson and Brad Garlinghouse, respectively.

There’s been talk that Garlinghouse might be considered as the possible crypto leader in a hypothetical Trump administration. If this were to happen, it could significantly boost XRP’s standing, particularly given Trump’s rumored pro-cryptocurrency views.

At the same time, the revival of XRP is happening hand-in-hand with increased attention towards Ripple’s notable legal dispute with the U.S. Securities and Exchange Commission. This ongoing court case, initiated in December 2020, has caused XRP to experience considerable market turbulence and regulatory ambiguity.

Ripple vs. SEC Case Amid Potential Shifts in US Crypto Regulation

After the lawsuit, Ripple’s value has returned to its previous level, much like the period before the SEC declared Bitcoin and Ethereum as non-securities in 2018, following the Hinman speech in June of that year, which was based on the “adequately decentralized” argument. This declaration led Ethereum’s market cap to surpass Ripple’s in November 2018.

In the Ripple case, emails referred to as “Hinman emails” revealed disagreement among certain SEC officials regarding the content of a speech. Their concern was primarily about how it might impact the regulatory standing of other digital currencies, as this aspect remains undetermined. Nevertheless, the regulatory situation for XRP has yet to be definitively decided, with legal analysts anticipating that the case could drag on until July 2025.

Despite his unsuccessful Senate run, outspoken attorney John Deaton, who’s an advocate for Ripple and XRP investors, has pledged to carry on championing their cause. This determination underscores the significance of this legal battle within the wider cryptocurrency sector.

Currently, Chair Gary Gensler’s firm approach towards cryptocurrencies at the SEC has faced significant criticism, and there’s a growing chorus demanding regulatory clarity. Some believe that Gensler’s potential resignation could signal a change in direction. Many are speculating that this departure might lead to a more welcoming regulatory environment for cryptocurrencies, especially if a pro-crypto administration comes into power.

As an analyst, I find myself optimistic about the potential impact of a second Trump term on the crypto market. Given his administration’s perceived lean towards business-friendly policies, it could pave the way for regulations that are more favorable to cryptocurrencies. This shift might lead to a resolution of Ripple’s longstanding legal issues, bringing an end to years of regulatory ambiguity.

Despite the latest advancements, experts caution that there could be a surge in profit-taking by XRP whales due to an increase in transactions from whales to exchanges, suggesting potential selloffs.

Historically, increases in the number of whale transactions (indicated by red circles) have often occurred at the same time as peaks in XRP’s price. This pattern suggests that whales tend to transfer large amounts of XRP to exchanges for selling when prices are close to local or cycle highs. The recent surge in whale-to-exchange activity happens to line up with XRP reaching a local price of approximately $2.3, which might be a sign of the whales preparing to cash out or increase market activity. This analysis was made by a CryptoQuant expert.

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2024-12-02 08:55