Ripple (XRP) Surges to $2.40 Amid Market Shakeup

XRP continued its rally over the weekend with a gain of around 65 percent and moved up to third place in the list of the most capitalized cryptocurrencies.

Which are the reasons for Ripple’s advance

Ripple (XRP) is trading at around $2.40 on Monday morning – levels last seen in January 2018. XRP has risen a whopping 65 percent since Friday, shaking up the list of the most important cryptocurrencies. With a market capitalization of around $140 billion, the Ripple altcoin has overtaken Binance Coin (BNB), Solana (SOL) and the stablecoin Tether (USDT) in recent days and is now in third place – only Bitcoin and Ethereum are currently considered more valuable than XRP. What is behind the Ripple rally?

• With Donald Trump’s election victory almost a month ago, the situation of Ripple and XRP in the USA changed abruptly. Trump represents a 180-degree turn in crypto policy and a pending lawsuit by the US Securities and Exchange Commission (SEC) against Ripple and XRP is likely to be dropped by spring at the latest. In addition, Ripple CEO Brad Garlinghouse has already been able to establish direct contact with Trump. These developments helped XRP to break the $1 mark in November.

– On Friday, Fox Business reported that the Ripple stablecoin RLUSD, which had been announced since April, had finally received approval from the New York Financial Authority. According to this, RLUSD could come onto the market as early as Wednesday (December 4th). Fox cites sources “familiar with the matter” and an official confirmation is still pending. Ripple sees its stablecoin as an important additional element in the XRP ecosystem and had already introduced well-known partners such as Bitstamp and MoonPay for the launch of RLUSD in October.

– The stablecoin sector in the crypto industry currently has a market capitalization of almost $180 billion with the market leaders Tether (USDT) and USDC. Ripple expects demand for stablecoins to rise sharply and wants to catch up with the market leaders with its own RLUSD offering. Banks and fintech companies are also expected to use RLUSD, and Ripple has been cultivating its relationships with the traditional financial sector for years.

– Applications for XRP ETFs are also included in the evaluation. Ripple’s cryptocurrency could become the third coin after Bitcoin and Ethereum to be tradable as an ETF in the USA – this promises an inflow of capital for XRP.

Conclusion: XRP with a rapid comeback – will Ripple stay in the fast lane?

The comeback of XRP is remarkable: When the SEC sued Ripple in December 2020, the price curve collapsed sharply to below $0.30 and some observers expected a sustained loss of importance. But now XRP is suddenly back in the top league of global cryptocurrencies and can rely on an environment in which the ecosystem is rounded off with the stablecoin RLUSD and thus appears prepared for a wide range of applications.

The launch of tokenized money market funds on the XRP blockchain a few days ago provided an example of what Ripple is planning for the future. It seems as if the wind has changed for XRP for good and Ripple can concentrate on core competencies again instead of wearing itself out in the legal dispute with the SEC.

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(Featured image by Dmytro Demidko via Unsplash)

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