Summary:
XRP surged over 300% in a month, reaching $2.37.
Ripple’s market cap is now around $135 billion, making it the fourth-largest cryptocurrency.
The rise reflects a broader trend post-Trump's election, with hopes for a crypto-friendly administration.
A court ruled XRP is not a security when sold to the public, leading to a reduced penalty against Ripple.
Upcoming launch of RLUSD stablecoin could drive further growth for XRP.
The price of Ripple’s cryptocurrency XRP has surged over 300% in a month, skyrocketing from $0.22 to $2.37 since early 2021. This impressive rally has propelled XRP to become the world’s fourth-largest cryptocurrency with a market cap of around $135 billion, following Bitcoin, Ethereum, and Tether.
The Ripple Effect of Political Changes
The surge in XRP mirrors trends across cryptocurrencies post-Trump's election, where optimism about a crypto-friendly administration has ignited unprecedented interest in digital assets. Trump’s statement about making the U.S. the “crypto capital” has contributed to Bitcoin crossing the $100,000 mark for the first time, doubling from $44,000 earlier this year.
Ripple's Legal Battles and Court Rulings
Ripple, known for its fast and low-cost international money transfers, has faced significant legal challenges. In 2020, the U.S. SEC alleged that Ripple raised over $1.3 billion by selling XRP in an unregistered offering. However, a court ruling in 2023 stated that XRP is not a security when sold to the public on exchanges, though it remains classified as a security when sold to institutional investors. This led the SEC to pursue a $2 billion fine, but the court ultimately imposed a $125 million penalty instead.
Political and Regulatory Landscape Shifts
Recent lawsuits against the SEC by state attorneys general and the DeFi Education Fund accuse the regulator of overreach in its actions against digital asset exchanges. As a result, it’s anticipated that the current SEC chair, Gary Gensler, will step down in January 2025, potentially leading to a more crypto-friendly successor.
Future Growth and Innovations
XRP's growth trajectory appears promising, especially with the upcoming launch of the RLUSD stablecoin, which is pending approval. This stablecoin will be fully backed by cash, government treasury securities, and other cash equivalents, further enhancing Ripple's utility.
Performance Comparison
Despite XRP's 1,000% rise since early 2021, its returns have fluctuated: 278% in 2021, -59% in 2022, and 81% in 2023. Comparatively, the S&P 500 delivered 27% in 2021, -19% in 2022, and 24% in 2023, indicating that XRP underperformed the S&P in 2022. Consistent performance against the broader market has been challenging for both individual stocks and cryptocurrencies.
XRP Return Compared With Trefis Reinforced Portfolio
Investors are keenly observing these developments, as the future landscape for XRP and Ripple continues to evolve amidst political and regulatory changes.
Comments