Ripple Labs' XRP cryptocurrency has surged to become the third-largest cryptocurrency on the market, surpassing popular stablecoin USDT, with gains exceeding $100 billion.
The currency rose 15% today, reaching $2.50, bringing its market cap to more than $137 billion, up from less than $30 billion on November 5, the day Donald Trump won the US presidential election.
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Optimism after Trump's victory
The cryptocurrency rally was fueled by optimism over Trump’s victory, with expectations of more supportive policies for companies operating in the digital asset sector in the United States. Despite this momentum, XRP has seen exceptional growth, surpassing rivals such as Solana and Tether’s USDT in market value.
The coin surged 15% on Monday to $2.50. In the process, its market cap has surpassed $137 billion, up from less than $30 billion on Nov. 5 when Trump won the election.
In 2020, the US Securities and Exchange Commission filed a lawsuit against Ripple Labs, alleging that the San Francisco-based company violated the law when it raised money by selling XRP without registering it as a security.
Later, the agency, under the chairmanship of Gary Gensler, filed lawsuits against several digital asset companies including Quizbase and Binance. On the campaign trail, Trump vowed to fire Gensler, who now intends to step down in January, the day the president-elect is scheduled to be inaugurated. Trump has pledged to appoint crypto-friendly officials and support the creation of a U.S. strategic reserve of bitcoin.
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Presidential support for cryptocurrencies
Trump has announced his intention to ease the regulatory restrictions imposed by the Biden administration on cryptocurrencies, and confirmed his intention to appoint officials who support the sector to regulatory bodies. The Republican president also supports the idea of creating a US strategic reserve of Bitcoin.
It is worth noting that Trump's position on cryptocurrencies has changed radically, as he was initially one of the most prominent skeptics, but he adopted a supportive view after this industry contributed to financing his election campaign.
Since Trump’s election, the cryptocurrency market cap has surged by about $1.2 trillion. The massive rally has eclipsed memories of the great crash of 2021, which exposed fraudulent practices and high risks during the market’s heyday.