Ripple’s flagship cryptocurrency, XRP, has caught investor’s attention with its massive rally over the last month. The surge, previously initiated by a Trump win in the November elections, sent the price of the trending token above $2 for the first time in three years.
Notably, XRP went from being the seventh-largest cryptocurrency by market cap to briefly positioning as the third earlier today. However, USDT quickly regained its position, dropping XRP to the fourth position. At the time of writing, XRP was trading at $2.32, representing a 20% increase in the last 24 hours. Let us highlight other catalysts behind the surge.
Source: CoinMarketCap Key Factors Behind the XRP Surge Significant Whale Accumulation
One of the major factors behind the current XRP rally is a significant accumulation by large investors. According to a recent report by Santiment, wallet addresses holding between 1 million and 10 million XRP coins collectively accumulated a staggering 679.1 million XRP in just three weeks.
XRP has skyrocketed to an astounding $2.49 market value for the first time since January 8, 2018. The 6-year (nearly 7-year) high comes as wallets with 1M-10M XRP have accumulated 679.1M tokens (currently worth $1.66B) in just 3 weeks. Also, total non-empty XRP wallets have… pic.twitter.com/bIsfOqdCQX
— Santiment (@santimentfeed) December 2, 2024
Notably, the total value of the amassed asset now stands at $1.66 billion. These whale investors have been purchasing from retailers who were quick to sell off their holdings to cash in on already accumulated gains.
Moreover, Santiment noted the number of non-empty wallets (wallets that hold at least 1 XRP), has jumped to 5.5 million, for the first time since the coin was launched in 2012. These metrics translate to bullish outcomes as they demonstrate growing adoption and investors’ interest in the coin.
Potential December 4 Stablecoin Launch Date
Another reason why XRP is up today is the momentum behind the anticipated stablecoin launch. Ripple first signaled its intentions to venture into the stablecoin market in April 2024 and has since launched the coin (RLUSD) in Beta mode, testing it on XRPL and the Ethereum blockchain with selected companies.
Ripple’s president, Monica Long, previously emphasized that all is set for the launch, however, it was still awaiting approval from the New York State Department of Financial Services (NYDFS). Over the weekend, Fox Business Journalist, Eleanor Terret disclosed that Ripple is on the verge of receiving the much-awaited approval and is eyeing December 4 as the official launch date for RLUSD.
This revelation immediately triggered a wave of bullish momentum in the XRP community as members related the launch to a good sign that would positively impact XRP’s trajectory.
Expected Regulatory Changes
The last reason can be attributed to the expected overhaul of the Securities and Exchange Commission (SEC) and an incoming pro-crypto administration led by Donald Trump.
It is no news that Gary Gensler, the current SEC chairman, has announced his resignation on January 20, 2025. Notably, this is the same day Trump would be inaugurated into office. The update is particularly significant because the commission has created stringent policies for the crypto industry over the years.
Also, it has dragged several prominent crypto firms including Ripple, Coinbase, Binance, and Kraken to court over alleged unregistered securities offerings. The Ripple vs SEC case has lasted four years but is looking to be resolved soon.
Even though the court has ordered the SEC to file its opening brief by January 15, 2025, several legal experts have predicted that the case will most likely be dropped by the SEC once the new regime takes over.
The regulatory effect on XRP and the broader crypto market cannot be overlooked, as a new crypto-friendly regulation can create room for growth and advancement in the crypto sector.
The post Here is Why the XRP Price is Up Today appeared first on Coinfomania.
