The cryptocurrency market has been buzzing with excitement as XRP’s token price quadrupled over the last two months!
With a current market cap of $129.8 billion, XRP is now the world’s fourth largest cryptocurrency by market cap, bigger than Solana.
But what’s behind this meteoric rise? Several key factors have aligned to create this perfect storm of growth. We take a closer look below.
Ripple’s Victory Over the SEC
Perhaps the most significant catalyst has been XRP’s partial victory in its ongoing legal battle with the U.S. Securities and Exchange Commission.
In August, a judge ordered Ripple to pay $125 million in civil penalties, just a fraction of the $2 billion in fines that the SEC originally sought out.
The judge also dismissed allegations of fraud, misappropriation, or other more culpable conduct, and that the SEC hadn’t shown that Ripple’s failure to register the sales with them caused investors significant losses.
This landmark decision has done more than just clear legal hurdles—it’s opened doors for institutional investors who previously sat on the sidelines due to regulatory concerns. The clarity provided by this ruling has created a more stable environment for traditional financial services companies to embrace crypto.
Ripple CEO Garlinghouse Meets with Trump Post-Election
In mid-November, not long after the US Presidential Election, Ripple CEO Brad Garlinghouse met with Trump.
While the details of the meeting were not disclosed, XRP’s token price jumped by 10% on expectations that Ripple was to become a main beneficiary of Trump’s pro-crypto policies.
This sparked the beginning of a month-long rally.
Ripple’s Bold Move into Stablecoins
On December 10, the New York Department of Financial Services (NYDFS) approved Ripple’s RLUSD stablecoin after several months of consideration.
RLUSD was designed to be used as a fast, secure medium for global payments between large enterprise clients, and will be incorporated into the Ripple payments network in 2025.
Subsequently, RLUSD listed on multiple exchanges on December 17, such as Uphold, MoonPay, CoinMENA, Archax, and Bitso. Its market cap grew quickly and now stands at ~$53 million, as of December 26.
Ripple executives speculated that its market cap could grow to as much as $2 trillion by 2028.
Providing Actual Value for Institutions
What sets XRP apart in the crowded cryptocurrency space is its practical utility in cross-border payments.
With a settlement time of just a few seconds and the ability to handle 1,500 transactions per second, XRP offers a compelling alternative to traditional banking methods.
These advantages haven’t gone unnoticed, leading to increased partnerships with banks such as Santander and the Commonwealth Bank of Australia.
Looking Ahead
The road ahead looks promising for XRP. Its continued expansion into Asian markets, a growing role in payments through RLUSD integration, and continued development within the stablecoin ecosystem suggest sustained growth potential.
XRP’s recent performance and strategic positioning suggest it will remain a significant player in shaping the future of digital assets.
With institutional adoption growing and new use cases emerging, XRP’s journey from a simple cryptocurrency to a comprehensive financial solution appears to be just beginning.
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