Crypto Quill

Ripple’s XRP token has soared to become the third-largest cryptocurrency, capitalizing on a $100 billion rally that has propelled it past several major rivals. The surge, which saw XRP rise by 32% to a price of $2.87, has taken its market capitalization to over $154.6 billion, a significant jump from just $30 billion on November 5, 2024. The surge began after Donald Trump’s victory in the U.S. Presidential election, a result that has reignited enthusiasm in the crypto market.

XRP’s Meteoric Rise

XRP’s dramatic price jump was fueled by a combination of overseas buying—particularly from South Korea—and short liquidations on futures exchanges. According to Edward Chin, co-founder of Parataxis Capital, approximately $60 million in short positions for XRP were liquidated in the last 24 hours, a sum greater than the liquidations for Bitcoin and Ether combined.

Despite the excitement, experts, including Chin, caution that the rally appears to be driven by retail investors rather than any significant change in the fundamentals of XRP itself. “Nothing has fundamentally changed for XRP,” Chin said, adding that the rally could continue due to the market’s reflexive nature.

Trump’s Impact on the Crypto Market

The surge in XRP’s value builds on a broader crypto rally sparked by Trump’s victory. His campaign promises to foster a favorable regulatory environment for digital assets have ignited speculative fervor. Analysts predict that with Trump’s expected actions—such as removing SEC Chair Gary Gensler and creating a U.S. strategic Bitcoin stockpile—the regulatory landscape for cryptocurrencies in the U.S. could improve, making it a more conducive environment for digital-asset firms.

This optimistic sentiment has been reflected in the broader crypto market, which has gained around $1.2 trillion in market value since Trump’s win. Bitcoin, the leader of the market, recently traded at $95,760, edging closer to the $100,000 mark for the first time. Ether, the second-largest token, was valued at $3,613.

XRP Surpasses Rivals

XRP’s recent price rally has propelled it ahead of its competitors, including Solana and Tether (USDT), the world’s largest stablecoin. This positioning highlights XRP’s newfound momentum and suggests strong retail investor interest, although market analysts warn that the continued rally might be unsustainable in the absence of fundamental changes within Ripple Labs.

Ripple has faced significant legal challenges since 2020, when the U.S. Securities and Exchange Commission (SEC) sued the company for allegedly selling XRP as an unregistered security. The outcome of this lawsuit, along with broader regulatory changes under Trump’s administration, could play a crucial role in XRP’s future price movements.