XRP has surpassed stablecoin Tether (USDT) in market value, becoming the world's third-largest cryptocurrency behind Bitcoin and Ethereum.$XRP
At the time of writing, XRP’s market cap has reached $141.8 billion, surpassing USDT’s $134.5 billion market cap. Gaining 30% in the last 24 hours to $2.46, XRP continues its strong performance.
This rise is linked to news last week that Ripple Labs’ RLUSD stablecoin is close to being approved by the New York Department of Financial Services (NYDFS). According to Fox News, Ripple plans to launch RLUSD on Dec. 4.
Peter Chung, Head of Research at Presto Research, stated that these developments are behind the recent price increase of XRP, and said, “The approval of NYDFS and the departure of SEC Chairman Gary Gensler are among the main factors triggering the rise of XRP.”
The announcement in January that Gary Gensler would step down as SEC chairman has been a positive sign for XRP. Ripple Labs has been embroiled in a legal battle with the SEC since 2020 over the sale of $1.3 billion in unregistered securities. Chung said Gensler’s departure presents a huge opportunity for Ripple:
“Gensler’s resignation increases the likelihood that the new SEC administration will drop the lawsuit against Ripple or pursue a settlement. This could lead to fewer distractions from Ripple’s work to develop the XRP ecosystem.”
In addition, former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo also stated that the SEC, together with the Trump administration, may end the Ripple case. This development could help reduce the pressure on XRP.
As demand for XRP grows, market participants are also monitoring the possibility of spot XRP exchange-traded funds (ETFs) being approved. Asset management firms such as 21Shares, Canary Capital, and Bitwise have already submitted applications for XRP ETFs.
It is thought that Ripple's stablecoin RLUSD can be used to create a new ecosystem on the XRP Ledger and this development could contribute to the long-term value of XRP.