XRP has recently become the third-largest cryptocurrency by Market cap, surpassing Tether (USDT). As of December 1, 2024, XRP’s Market cap reached $141.8 billion, boosted by a 30% price surge within 24 hours and a remarkable 364% increase over the past month. This rise is largely due to optimism surrounding Ripple’s legal battle with the SEC and the potential approval of its RLUSD stablecoin. Additionally, changes in SEC leadership may lead to a more favorable environment for Ripple. While XRP remains below its all-time high, the combination of regulatory developments and Ripple’s plans for stablecoins and ETFs suggests a bright future for the cryptocurrency, though caution is advised for new investors.
XRP has recently made headlines by surpassing Tether (USDT) to become the third-largest cryptocurrency, following Bitcoin and Ethereum. As of December 1, 2024, XRP’s Market capitalization reached an impressive $141.8 billion, compared to USDT’s $134.5 billion. In just 24 hours, XRP’s price jumped by 30%, settling at $2.46, and over the past month, it has increased an astonishing 364%. This surge also saw XRP exceed Solana’s Market cap over the weekend.
Several factors contributed to XRP’s rise. One significant element is Ripple’s ongoing legal battle with the Securities and Exchange Commission (SEC). There are hopes that Ripple could soon gain approval for its RLUSD stablecoin from the New York Department of Financial Services (NYDFS). This approval is expected to come on December 4, allowing Ripple to integrate RLUSD into its RippleNet payment system, which could enhance its position in cross-border payments.
Additionally, a potential leadership change at the SEC has sparked optimism. Current chairman Gary Gensler is expected to step down in January 2025, which raises hopes for a more favorable approach towards Ripple from any new SEC leadership. The ongoing lawsuit against Ripple, which began in December 2020, has been a major obstacle for XRP, but many believe this situation may improve with new leadership.
Despite its recent gains, XRP is still around 27.6% below its all-time high of $3.40, achieved in January 2018. While some analysts caution new investors to be careful due to the potential for a short-lived increase, the prospects of regulatory changes and Ripple’s stablecoin plans seem to be boosting confidence in XRP’s future.
On top of RLUSD, Ripple is also exploring the development of exchange-traded funds (ETFs) for XRP, which could attract traditional investors. There are no approved XRP ETFs at the moment, but several asset managers are awaiting regulatory decisions.
Overall, Ripple’s recent performance and growing support from regulatory developments paint a promising picture for XRP. As the company continues to roll out its stablecoin and other financial services, XRP’s position in the Market is likely to strengthen, although its future still hinges on the ongoing legal and regulatory landscape.
What does it mean for XRP to surpass Tether in Market size?
It means that XRP is now the third largest cryptocurrency by Market value, moving ahead of Tether. This shows increased confidence and interest in XRP.
Why is XRP gaining popularity now?
XRP is gaining popularity due to positive news about regulations and hopes that it will be allowed to operate freely. Investors are feeling more optimistic.
What does the launch of a new stablecoin mean for the Market?
The launch of a new stablecoin can attract more investors and increase trading activity in the cryptocurrency Market. It can provide more options for people.
How does regulation affect the value of XRP?
Clear regulations can make investors feel safer about investing in XRP. When regulations are favorable, it can lead to increased demand and higher prices.
Can XRP maintain its position as the third-largest cryptocurrency?
It’s hard to say for sure. Cryptocurrency prices can change quickly. However, if XRP continues to gain support and improve in the Market, it has a good chance to stay strong.
