XRP, the cryptocurrency issued by Ripple, soared to $2.48 on Monday, reaching its highest price in six years and securing its position as the third most valuable cryptocurrency globally. While still below its 2018 peak of $3.40, several factors suggest XRP could surpass this record, according to Arthur Azizov, CEO of crypto exchange B2BinPay.
Donald Trump’s presidential win has reignited bullish sentiment in the cryptocurrency market, with investors anticipating pro-crypto policies. The market has seen a 42% surge to $3.5 trillion since the election. Ripple CEO Brad Garlinghouse expressed confidence in Trump’s potential impact on the industry, stating that he will “make crypto great again.” XRP has seen a remarkable fivefold increase since November 5, outperforming Bitcoin, Ethereum, and Solana.
XRP’s price surge coincides with a trading frenzy, further amplified by its relisting on the Robinhood platform last month. The retail trading app had previously delisted XRP following regulatory scrutiny and the SEC’s lawsuit against Ripple for alleged securities law violations. Despite a $125 million fine in August, Garlinghouse viewed the ruling as a victory. Ki Young Ju, CEO of CryptoQuant, points to Coinbase whales as drivers of the XRP rally, noting a price premium on Coinbase compared to retail-focused platforms like Upbit. Data from Scopescan also highlights significant XRP trading activity on South Korean exchanges, surpassing Bitcoin’s volume in recent activity.
The resignation of SEC Chair Gary Gensler, known for his stringent stance on the crypto industry, is seen as another positive catalyst for XRP. His departure, coinciding with Trump’s inauguration on January 20, raises hopes for a more favorable regulatory environment. Azizov suggests that Gensler’s exit could potentially lead to a resolution in Ripple’s legal battle with the SEC, paving the way for further XRP growth.
Bitcoin’s recent surge towards $100,000, driven by Trump’s victory, has been accompanied by a decline in its market dominance from 60% to 53%. Historically, this pattern indicates the beginning of an “altcoin season,” where investor attention shifts to alternative cryptocurrencies like XRP, according to crypto research firm 10x Research.
Following the successful launch of Bitcoin and Ethereum spot ETFs, XRP is vying to be the next cryptocurrency to gain ETF approval. Garlinghouse has expressed his belief that an XRP ETF is “inevitable.” Several firms, including Bitwise Asset Management, Canary Capital, 21Shares, and WisdomTree, have already filed XRP spot-ETF applications with the SEC. Approval of these ETFs could significantly boost XRP’s price, according to André Dragosch, Bitwise Europe’s research chief.
