- XRP briefly overtakes BlackRock as crypto frenzy fuels market growth.
- Ripple gains momentum with legal clarity, ETFs, and global expansion.
- Institutional demand pushes XRP valuation higher despite market correction dips.
Ripple Labs-backed XRP has shaken global markets after briefly surpassing BlackRock Inc. in market valuation. According to CoinMarketCap, XRP’s capitalization reached about $176B, while its fully diluted valuation stood near $296B. The achievement comes despite recent volatility, as XRP had slipped from a high of $210B during the latest market correction.
XRP trading has increased tremendously. Over the past day, the asset has had almost $6.9 B in trading volume. Analysis of CoinGlass data also showed that Futures Open Interest in XRP increased more than twofold within two months, rising to $8.1B in late August, compared to $3.87B in June.
In the meantime, BlackRock had a market capitalization of approximately 187B. The asset manager, which manages more than $10T in assets, had a daily average trading volume of only 591,000 shares. The comparison showed the fast movement and the increased popularity of XRP in the international markets.
Source: Coinglass
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Drivers Behind XRP’s Market Breakthrough
Regulatory clarity has been a significant turning point for XRP. The end of the legal dispute between Ripple and the SEC, which was approved by the United States Court of Appeals of the Second Circuit, enabled Ripple Labs to concentrate on expansion. Meanwhile, the Trump administration continued its promise to regulate cryptocurrencies, proposed the GENIUS Act, and endorsed the Clarity Act.
There has also been a massive increase in institutional interest in XRP. Key players who have recently submitted amended S-1s to list spot XRP ETFs include Canary, CoinShares, Franklin, WisdomTree, Bitwise, and 21Shares. This is an indication of the increasing need to have regulated digital asset investment opportunities.
Expanding Global Reach and Adoption
Ripple Labs has continued to expand its global reach. The company has pursued a U.S. banking charter while strengthening operations across international markets. Its payment solutions, such as Ripple USD (RLUSD), have expedited mainstream use and strengthened the role of XRP in cross-border financial solutions.
Market-wide bullish sentiment has amplified XRP’s momentum. Crypto assets are in a new growth phase as expectations for monetary policy changes in the United States and global liquidity increase. Institutional participation is an important feature of the current bull run, as opposed to the retail-driven rally of 2017.
Technically, XRP is showing good bullish trends. Analysts observe that the asset is retesting a long-term breakout level last seen in 2018 and continues to form higher highs and lower lows.
Outlook
XRP’s brief overtaking of BlackRock’s valuation underscores the changing dynamics of financial markets. With legal clarity, institutional adoption, and global expansion, XRP remains a leading force in the ongoing crypto frenzy.
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