Ripple’s XRP token has seen a significant surge, reaching $2.46 and becoming the third-largest cryptocurrency by market cap. Ripple’s XRP has surged to become the third-largest cryptocurrency by market cap, overtaking Solana and USDT. This surge is attributed to several factors, including positive developments in the U.S. political climate for cryptocurrencies and anticipation of Ripple’s RLUSD stablecoin project.
On December 1, 2024, XRP closed at $1.95, a price it had not reached since April 2021. The cryptocurrency jumped higher on December 2 to a current value of $2.42, a 4.67% increase within the past 24 hours. Trading volume increased to $27 billion. On weekly levels, XRP increased 54% while increasing by 318% within the last 30 days. This price increase also means that XRP has, for the first time, reached close proximity to its historical peak of $3.40, recorded in January 2018.
Meanwhile, Michael Saylor, the executive chairman of MicroStrategy, has pitched a bold Bitcoin strategy to Microsoft’s board of directors. Saylor suggested that Microsoft could add nearly $5 trillion to its market capitalization by fully embracing Bitcoin. He proposed that Microsoft convert its cash flows, dividend payouts, stock buybacks, and debt into Bitcoin, predicting significant financial rewards for shareholders.
In December 2020, the SEC filed a case against Ripple, alleging that the company was selling unregistered securities through its XRP token. The court, however, found that although Ripple violated securities laws due to institutional sales of XRP, sales on public exchanges constituted a different type of transaction from a securities transaction. This difference has been very fundamental in the outcome of this case. Ripple, however, appealed against the ruling of an SEC fine of nearly $2 billion in damages.
There is optimism that the SEC may drop its appeal now under Trump’s new pro-crypto leadership. SEC Chair nominee Paul Atkins is an ardent free-market advocate, which has fueled speculation about leading policy shifts in favor of Ripple and the overall cryptocurrency market. XRP’s bullish momentum has also been driven by growing speculation over XRP-based spot ETFs. Companies like Grayscale and WisdomTree have filed applications similar to Bitcoin’s ETF success, which led to BTC’s 127% increase in 2024.
XRP continues to hold firm above key support levels of around $1.85, though the 14-day RSI is at 85.41, indicating conditions for short-term corrections based on overbought conditions. Still, a breakout above $2.50 can be enough to set the price of XRP soaring to challenge its January 2018 peak. XRP’s upward trajectory during these times reflects growing investor confidence in its prospects as investors await some form of regulatory clarity and XRP ETF approvals.
XRP price surged past $2 for the first time in seven years on December 2, 2024. The XRP market cap is now at $138 billion. It has taken the spot of the third largest cryptocurrency after overtaking Solana. The XRP rally is fueled by optimism about Ripple’s probability of winning the SEC lawsuit.
The lawsuit was filed against it for selling unregistered securities through XRP tokens. This impressive rise is also driven by positive developments in the U.S. political climate for cryptocurrencies and anticipation of Ripple’s RLUSD stablecoin project. It’s an exciting time for XRP and the crypto market in general.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.