XRP Surges to Third in Market Cap

XRP, the native token of Ripple’s payment ecosystem, has surged to the third position in market capitalization, surpassing Tether’s stablecoin. The token has experienced an impressive 71% weekly gain, reaching $2.47, with a staggering 367% increase over the past 30 days, according to CoinGecko data.

Late Sunday, XRP flipped Solana for the fourth spot before edging out Tether. Investor sentiment has been buoyed by recent developments, particularly the impending departure of SEC Chairman Gary Gensler, set for January 20, 2025.

Ripple vs. SEC: A Turning Point

A Shift in Regulatory Leadership

The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been a key driver of XRP’s rally. Gensler, often criticized by the crypto community for his stringent regulatory stance, continued the lawsuit initiated in December 2020 by his predecessor, Jay Clayton.

With Gensler’s departure on the horizon, investors are optimistic about a more favorable regulatory approach, increasing confidence in Ripple’s ability to resolve the case.

The Case and XRP’s Independence

Ripple has maintained that XRP operates independently on its own ledger, even as the token is integrated into Ripple’s payment and settlement products. This distinction has been central to Ripple’s defense in the lawsuit, which alleges that XRP was sold as an unregistered security.

The possibility of a favorable outcome in the SEC case has spurred speculation that XRP could see broader adoption in financial applications, including potential spot exchange-traded funds (ETFs).

XRP Nears All-Time High

XRP’s recent rally has brought it within striking distance of its all-time high of $3.40, reached in January 2018. Currently, XRP is 27.6% below that peak but is closer to reclaiming it than at any time in nearly seven years.

Other major cryptocurrencies are also gaining momentum. Over the last 24 hours, Cardano (ADA) rose by 10%, while Shiba Inu (SHIB) and Stellar (XLM) recorded gains of 8% and 13%, respectively.

A Renewed Market Optimism

The combination of regulatory optimism and XRP’s rising adoption potential has solidified its position among the top cryptocurrencies. As Ripple navigates the final stages of its SEC lawsuit and the crypto market continues its upward trend, XRP’s role in financial applications could expand significantly.

Whether the token can sustain its momentum will depend on the outcome of Ripple’s legal battle and broader market conditions. For now, XRP’s climb to third place underscores its resilience and enduring appeal to investors.