XRP has displaced solana (SOL) to become the fourth-largest cryptocurrency by market capitalization, following an impressive increase in value during November. As of writing, XRP’s market capitalization exceeds $122 billion, surpassing solana’s $113 billion.
Before the U.S. Securities and Exchange Commission (SEC) sued Ripple Labs in December 2020, alleging XRP was an unregistered security, XRP was the third-largest cryptocurrency by market capitalization, behind bitcoin and ethereum. The lawsuit led to significant investor hesitation, delistings on major exchanges, and a sharp decline in XRP’s valuation. Major crypto trading platforms such as Coinbase halted XRP trading, pushing it to seventh place in market capitalization for an extended period.
A legal breakthrough in July 2023 partially resolved XRP’s regulatory uncertainty, determining that the token is not a security in some contexts. This decision sparked a significant rally in XRP’s value and increased its market cap.
Donald Trump’s re-election and the upcoming resignation of SEC Chair Gary Gensler have bolstered positive market sentiment for XRP. Following Trump’s victory, XRP’s price surged as investors anticipated a more favorable regulatory environment for digital assets under the new administration. Gensler, known for his “regulation by enforcement” approach to regulating the crypto sector, is set to step down on Jan. 20, 2025, coinciding with Trump’s inauguration. Speculation suggests his departure could lead to the appointment of a more crypto-friendly SEC Chair, potentially easing regulatory pressures on XRP and other cryptocurrencies.
Moreover, Ripple CEO Brad Garlinghouse has praised Trump’s nomination of Scott Bessent as Treasury Secretary, describing him as the “most pro-innovation, pro-crypto Treasury Secretary” to date. These regulatory shifts, coupled with expectations that the SEC could drop its lawsuit against Ripple, have reinforced investor optimism. XRP’s market resurgence reflects broader hopes for a less restrictive environment for digital assets in the coming years. Meanwhile, SOL has encountered a slight downturn, trading at $236.21 as of writing.
