Ripple’s XRP has flipped Binance Coin (BNB) to become the fifth-largest cryptocurrency by market capitalization. XRP’s market cap reached $99 billion on Friday, marking its highest level in over three years. The altcoin is experiencing strong bullish momentum, having surged by more than 230% in November alone. This remarkable rally has caught the attention of both retail and institutional investors, signaling a potential turning point for XRP after years of underperformance in the market.
XRP’s recent rise can be attributed to several factors, most notably the progress in Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The prolonged court case has significantly impacted XRP’s market activity, but recent developments have ignited optimism among long-term holders.
SEC Chair Gary Gensler’s announcement that he will resign in January 2025 has sparked speculation that Ripple’s legal issues may soon come to a favorable conclusion. Gensler has been a central figure in the SEC’s case against Ripple, which centers on whether XRP should be classified as a security. His resignation is viewed by many in the industry as a positive step, potentially easing the regulatory pressure on Ripple and allowing XRP to regain momentum.
Also Read: Ripple vs. SEC: Legal Expert Debunks Court Expedition Rumor
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Rising Institutional Interest and Ripple’s Strategic Moves
In addition to the regulatory changes, institutional interest in XRP is rising. Last week, WisdomTree, one of the world’s largest asset managers, filed for an XRP exchange-traded fund (ETF) in Delaware. This marks the third ETF application for XRP, followed by Bitwise and Canary Capital filings in October. These filings suggest that institutional investors increasingly seek exposure to XRP, particularly as the cryptocurrency becomes more accessible through ETFs.
Ripple is also preparing for significant upgrades to the XRP Ledger, designed to improve liquidity and attract institutional investors. These changes are expected to boost activity on the network, potentially directing hundreds of millions into XRP Ledger (XRPL) tokens, especially within the decentralized finance (DeFi) sector. Influencer Brett, sharing insights on X (formerly Twitter), noted that this increase in activity could significantly elevate XRP’s market position, further drawing in institutional interest.
With legal uncertainties easing and growing institutional support, XRP is showing signs of a potential market revival, positioning itself for a strong performance in the near future.
Also Read: Ripple Burns Over 46 Million RLUSD Tokens Amid Speculation of Upcoming Stablecoin Launch
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.