As of December 1, 2024, XRP has officially surpassed Tether (USDT) in market capitalization, securing its position as the third-largest cryptocurrency, trailing only Bitcoin and Ethereum. XRP’s market cap now stands at an impressive $141.8 billion, compared to USDT’s $134.5 billion. This remarkable achievement follows a staggering 30% price surge within just 24 hours, bringing XRP’s trading value to $2.46 and marking an astonishing 364% increase over the past month. This shift also saw XRP overtake Solana in market capitalization over the weekend.
Several key factors have fueled XRP’s ascent, notably Ripple’s ongoing legal battle with the SEC and the anticipated approval of its RLUSD stablecoin by the New York Department of Financial Services (NYDFS). Sources indicate that a decision from the NYDFS could come as early as December 4, allowing Ripple to launch RLUSD and integrate it into its RippleNet payment system. This development is expected to enhance Ripple’s position in cross-border payments, potentially providing XRP with greater stability and utility.
Additionally, the upcoming leadership change at the SEC has sparked optimism among investors. Current Chairman Gary Gensler has announced his plans to step down in January 2025, raising hopes that new leadership may adopt a more favorable stance toward Ripple. The SEC lawsuit against Ripple, initiated in December 2020, has posed significant challenges for XRP; however, many believe that a change in leadership could lead to a more amicable resolution, possibly resulting in a settlement or even dismissal of the case.
Despite the recent rally, XRP is still approximately 27.6% below its all-time high of $3.40 reached in January 2018. While the current momentum is encouraging, some analysts caution that this surge may be temporary and advise potential investors to proceed with caution.
In addition to the RLUSD stablecoin initiative, Ripple is also actively pursuing the launch of exchange-traded funds (ETFs) for XRP, which could attract traditional investors into the cryptocurrency market. Although no XRP ETFs have received approval yet, several asset managers have filed applications, and the market eagerly awaits regulatory decisions on these proposals.
The combination of regulatory developments and Ripple’s expanding ecosystem presents a promising outlook for XRP. As Ripple continues to innovate with its stablecoin and other financial products, XRP’s market position is poised for further strengthening—though its future trajectory remains closely linked to ongoing legal and regulatory outcomes.
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