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The cryptocurrency associated with Ripple Labs, XRP, has experienced a remarkable increase in its value, surging by 370% since the 2024 US presidential election. This is due to expected favorable policies for cryptocurrencies. This has ranked its market capitalization to $144.30 billion, further establishing it as the third largest crypto after Bitcoin and Ethereum.
Although still advancing, XRP price still did not overtake its all-time high of $3.40, recorded on the 7th of January 2018. This cryptocurrency mostly traded flat most of this year and is currently trading below $0.80 due to regulatory concerns and lower liquidity.
This trend began changing in late October with speculations concerning an administration friendly to cryptocurrencies under the presidency of Donald Trump triggered vigorous upward movement in the value of XRP.
The cryptocurrency market, in particular, has received a boost from President Trump, who has appointed several influential people known to support cryptocurrency. In particular, David Sachs, former PayPal chief operating officer, recently became Crypto and AI Czar, suggesting a precise governmental approach to digital assets.
Adding optimism to the market, Scott Besant has become Treasury Secretary, and Paul Atkins, who supports a moderate approach to cryptocurrencies, has been nominated for the SEC Chair post.
These strategic appointments are particularly important for Ripple Labs, which has faced a long and bitter legal trial with the SEC. The ongoing lawsuit, asserting that XRP is an unregistered security, has continued to weigh on its trading chances. Market participants are now optimistic that with the new SEC leadership under Atkins, the case might be settled or dismissed in the coming future, thus opening the doors for even more adoption of XRP.
The increasing positive as Ripple announced the launch of its enterprise-grade stablecoin, RLUSD (Ripple USD), to go live globally on December 17, 2024. RLUSD aims to increase institutional liquidity, trust, and compliance throughout Ripple’s network. RLUSD is Pegged 1:1 with the U.S. dollar. At first, RLUSD will be available on platforms like Uphold, Bitso, and MoonPay and will be launched on more exchanges in the following weeks.
Ripple CTO David Schwartz pledges new mechanisms to quickly stabilize RLUSD supply value at its targeted $1 peg amidst potential early pulsations. As an introduction of RLUSD in Ripple’s ecosystem, it will support Ripple’s and possibly XRP’s demand indirectly, with the help of cross-border institutional payments.
