In the most amazing turn of events, XRP, the digital asset of the XRP Ledger, has registered the highest price in more than 7 years, trading over $3 in the US session on Wednesday. According to available data, it has not traded this high since early 2018. XRP went up 11% in the last 24 hours, far outpacing Bitcoin’s 3.6% and the broader market’s 6.7% as measured by crypto sources. At the moment, XRP is trading at $3.089 as regulatory clarity and spot XRP ETF speculation drive the market.
“This surge is driven by a growing number of partnerships, the launch of Ripple’s stablecoin RLUSD, and speculation about a potential spot XRP ETF,” said Diego Cardenas, OTC trader at digital asset platform Abra, in a statement to news sources.
Institutional Interest, Strategic Accumulation
Largeholder accumulation has been one of the major drivers for XRP’s explosive growth. According to analytics firm Santiment, addresses holding between 1 million and 10 million tokens have collectively gathered an additional 1.4 billion XRP—worth approximately $3.8 billion—over the past two months.
This aggressive accumulation came in tandem with the consolidation of XRP’s price following early December highs, positioning the token for its recent breakout. Santiment’s data suggests that this strategic buildup by investors may continue to support the ongoing rally.
However, the legal fight between Ripple and the SEC remains the most watched fundamental for the token’s price action. The gains also depict an improving optimism about the incoming U.S. administration’s stance on digital asset regulation and the expansion effort by Ripple to extend its ecosystem.
Market Cap Milestone: XRP Beats BlackRock
XRP reclaims the 3rd largest cryptocurrency by market cap, beating USDT. At $170 billion, XRP’s market cap is larger than BlackRock, one of the world’s biggest asset managers.
This is partly due to the broader market – Bitcoin briefly traded above $100,000 today. Notably, XRP has been up 488% since Trump won the election.
“XRP’s rally is due to expectations of friendly crypto laws and reform of digital asset regulation in the US;” said Monica Long, Ripple’s president in a recent interview. “This spot ETF could be very soon as the new administration is moving faster on approvals.”
XRP Eyes New Highs
According to Omkar Godbole, a market analyst, the upside break of XRP’s consolidation pattern in December has paved the way for further gains. A 15 percent rally from the current price would send XRP above its record high of $3.40 reached in January 2018.
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However, Alex Thorn, head of research at Galaxy Digital, made the comment that for XRP to actually reach a new high, it would need to reach $4.24 adjusted for inflation.
With continued accumulation by institutional investors, speculation building over regulatory clarity, and the expansion of the Ripple ecosystem, XRP is positioned with much further upside potential.
Conclusion
XRP’s impressive rally reinforces the growing confidence in cryptocurrency markets as regulatory clarity and mainstream adoption drive momentum. As large investors continue to accumulate and speculation around a potential XRP spot ETF intensifies, the token is well-positioned to maintain its upward trajectory.
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FAQs
1. What’s behind the recent move?
Sources believe the rally is due to investor optimism for a potential spot ETF, Ripple’s new stablecoin RLUSD, and aggressive accumulation by large holders.
2. How does XRP compare to its 2018 all-time high?
At the moment, XRP trades to a great extent at a price lower than that in 2018; which was valued at $3.40, but it will need to break the $4.24′ barrier before being able to set a new record.
3. What is the contribution of institutional investors to XRP’s rise?
Institutions have been buying XRP for the last two months and have added $3.8 billion worth of XRP to their bags which is fueling the rally.
4. How has the market capitalization of XRP changed?
It climbed to $170 billion; as it reclaims third place among cryptocurrencies, now beyond BlackRock’s market value.
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