This article will analyze the event that XRP surpassed Solana and USDT in market cap to become the 3rd largest cryptocurrency, just below BTC and ETH. We will consider the factors contributing to the recent increase in XRP price, from activities of Ripple Labs to XRP ETF news. Then, we will evaluate the sustainability of this trend and forecast XRP’s future.
1. XRP Surpassed Solana and USDT in Market Capitalization: a Significant Milestone in the Cryptocurrency Market
On December 1, 2024, a notable event shook the cryptocurrency market: Ripple’s market capitalization surpassed both Solana and USDT.
Source: coinmarketcap.com
According to CoinMarketCap, at the time of writing, XRP has a market cap of 122 billion USD, higher than 111.9 billion USD of Solana. This rise is surprising, given Ripple’s difficult history and regulatory challenges.
XRP Price Chart. Source: https://coinmarketcap.com/currencies/xrp/
2. Factors that Drove the Strong Increase in XRP’s Price
XRP’s price increase started in recent weeks, from November 10, and reached an all-time high of $2.19 on December 1st (ATH of 7 years). This is not just a random surge, but is based on several factors:
XRP partnerships: Ripple continually announces new important partnerships, increasing its influence and investors’ trust. For example, Ripple partnered with Archax , a crypto exchange regulated in the United Kingdom, to launch tokenized money market funds on the XRP Ledger, which are valued at $4.77 billion.
Launch new products/features: Launching many new products will impress the investor community. For instance, Ripple Labs launched RLUSD stablecoin, which will be managed and approved by the New York Financial Services Authority.
Possibility of launching XRP ETF: You have probably heard that 21Shares, WisdomTree, Canary Capital, and Bitwise have filed for the XRP ETF. These events are raising expectations of the approval of XRP within the community. If approved, XRP ETF will open more opportunities for investors to invest in XRP more. This will put pressure on the price to increase.
Unverified rumors: Some of these rumors claim that Elon Musk has invested in XRP. They also contribute to positive sentiment and push the price of XRP up, though there is no evidence to prove it.
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3. Current Issues with XRP
Despite this price surge, XRP still faces the following challenges:
SEC Lawsuit: The SEC’s allegations that Ripple violated securities laws continue to cast a shadow over them. The outcome of this lawsuit will determine the future of XRP with a focus on the United States.
The Fluctuation of Crypto Market, up and down: The crypto market is always fluctuating unexpectedly. This may just be temporary; the surge in the price of XRP could go down with any negative events that might take place in the future.
Competitive Landscape: Crypto markets include many competitive altcoins with similar functions. Thus, in order to maintain its current position, XRP needs to continuously develop and upgrade, driven by Ripple, to attract more investors.
4. Conclusion
This increase in XRP’s price is mainly based on short-term positive factors such as the expectation of regulatory changes and rumors. Long-term success has to be based on how Ripple will be able to bring real value to users.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Conduct your own thorough research and consult with qualified professionals before making any investment decisions.
