XRP surged to $2.84, the highest price in six years, becoming the third most valuable cryptocurrency in the world. Although still below the all-time high of $3.30 set in 2018, experts believe XRP could surpass that record. Arthur Azizov, CEO of the cryptocurrency exchange B2BinPay, listed several factors contributing to XRP's strong rise.
Donald Trump's victory in the U.S. presidential election on November 5 has rekindled optimism in the cryptocurrency market. Investors are betting that Trump will fulfill his promise to support cryptocurrency, driving the market value up 42% to $3.5 trillion. Ripple CEO Brad Garlinghouse stated that Trump will "make cryptocurrency great again."
Since Trump's victory, XRP has increased fivefold, far exceeding the gains of Bitcoin, Ethereum, and Solana.
XRP's recent price surge coincides with a spike in trading following Robinhood's decision to relist the coin last month. The platform had delisted XRP in 2020 amid tight SEC scrutiny, accusing Ripple of selling unregistered securities.
Analysts say whale activity on Coinbase is also driving the price surge of XRP. CryptoQuant CEO Ki Young Ju notes that XRP trading on Coinbase reflects a higher price compared to retail-focused platforms like Upbit. Meanwhile, South Korean retail investors are contributing significantly to the price increase, with XRP trading volumes on exchanges like Upbit and Bithumb surpassing Bitcoin.
The resignation of SEC Chairman Gary Gensler, expected on January 20, is seen as a positive sign for Ripple. Gensler's tenure has been marked by an adversarial stance towards cryptocurrency, including Ripple's ongoing legal battle with the SEC.
Azizov believes Gensler's departure could pave the way for Ripple to address regulatory issues and open up further growth opportunities for XRP.
While Bitcoin's dominance in the cryptocurrency market has dropped from 60% to 53% over the past week, altcoins like XRP are benefiting from this shift. Traditionally, a decline in Bitcoin's dominance alongside market expansion can signal the start of an "altcoin season," where altcoins receive more attention.
After the success of spot Bitcoin and Ethereum ETFs this year, XRP could be the next target. Companies like Bitwise, 21Shares, and WisdomTree have filed for XRP ETFs with the SEC. Ripple CEO Garlinghouse has called the XRP ETF a "foregone conclusion," and analysts believe that approval could significantly boost XRP's price.
With Trump taking office and likely appointing a cryptocurrency-friendly SEC chairman, market experts believe the regulatory path for XRP ETFs could become easier.