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XRP – digital token owned and used for transactions by Ripple Labs has tinted new spectacular heights to rise to the third-largest crypto by market cap. After a $100 billion surge in virtually all the digital coins, XRP is valued at a market capitalization of $151.45 billion – far ahead of Solana and Tether (USDT). Currently XRP is trading at $2.65, XRP is likely to retest its recent high of $2.9 and potentially reach $3.5 or $4 in the coming days.
This rally occurred following XRP’s brief drop to $2.20, during the market correction but bounced back strongly, proving strong investors’ confidence. XRP has rapidly risen over the previous month having risen by over 424% in the last one month and its 7-day rise stands at 87% as of writing.
Some of the factors contributing to the XRP exceptional increase include political, regulatory and technological factors. People involved in the crypto currencies industry have noted some optimism following the recent victory of the U.S President elect Donald Trump.
Speculative interest in digital assets returns due to Trump’s commitment to slashing regulations and selecting crypto-friendly regulators.
Currently, Gary Gensler, the SEC Chair, who empowered and led several lawsuits against Ripple, Binance, and Coinbase, will be out of service early next year in January. Due to Trump’s administration, the regulation of digital assets may be expected to receive a more positive outlook in the future, thus removing the long-standing overhang to XRP.
The most important thing to note is that Ripple has experienced some major breakthroughs in the legal cases. Judge Analisa Torres recently released documents approving the use of XRP for payments by all U.S. banks and institutions. This new shift in the regulatory environment makes XRP essential as a digital asset in the financial system hence furthering its use.
It is believed that Ripple’s massive XRP escrow reserves can be used to create RLUSD, a dollar-backed stablecoin. Such a transition could help widen its XRP circulation and asset base while decreasing its supply, thus amplifying demand and its cost.
The proposed RLUSD stablecoin could directly compete with popular USDT and USDC incumbents and let Ripple expand its concept of changing cross-border payments. As the development awaits the regulatory approval early this December, it might enable more new use cases for XRP especially in the institutional and retail payments.
With XRP trading towards its recent high of $2.9, analysts speculate that a breakout above $3 could pave the way for targets of $3.5 and $4 in the coming days or weeks. Market sentiment remains bullish, bolstered by Ripple’s strategic moves and a changing political landscape.
As Ripple continues to innovate and navigate the regulatory landscape, XRP’s position as a dominant player in the cryptocurrency market seems all but assured. Whether through its groundbreaking RLUSD stablecoin or its expanded institutional adoption, XRP is shaping the future of digital finance.
