By: Osato Avan-Nomayo, DL News; Translated by: Tao Zhu, Jinse Finance
XRP soared to $2.48 on Monday, reaching its highest price in six years, becoming the third most valuable cryptocurrency globally.
Although still below the 2018 peak of $3.40, Arthur Azizov, CEO of enterprise crypto payment platform B2BinPay, pointed out that several factors suggest that the cryptocurrency issued by U.S. blockchain company Ripple may break this record.
Trump's Victory
Azizov said that Donald Trump's victory in the U.S. presidential election on November 5 is one of the main reasons.
The victory of this Republican candidate has sparked a return of bullish enthusiasm in the cryptocurrency market, as investors bet that the elected president will fulfill his promise to support cryptocurrencies. Since the election, the market cap of cryptocurrencies has surged by 42%, reaching $3.5 trillion.
Ripple CEO Brad Garlinghouse stated that Trump will 'make cryptocurrencies great again.'
Garlinghouse has reason to be optimistic. Since November 5, XRP has increased fivefold, outpacing the percentage gains of well-known cryptocurrency competitors like Bitcoin, Ethereum, and Solana.
Trading Frenzy
The price increase of XRP also coincided with a trading frenzy, especially after Robinhood relisted XRP on its platform last month.
In 2020, the U.S. Securities and Exchange Commission charged Ripple with violating securities laws by selling cryptocurrencies, leading to the delisting of the trading app after XRP came under regulatory scrutiny. In August, a U.S. judge imposed a $125 million fine on Ripple. For Garlinghouse, he called this ruling a victory for the company.
Ki Young Ju, CEO of the crypto analytics platform CryptoQuant, stated that Coinbase whales are driving up XRP.
Young Ju stated that fierce XRP trading activity on Coinbase has led to a price premium for the cryptocurrency, compared to more retail-focused platforms like Upbit.
Data from the crypto analytics platform Scopescan indicates that South Korean retail investors have also contributed to the surge in XRP prices.
In the past 24 hours, XRP trading volumes on exchanges in Asian countries like Upbit and Bithumb have surpassed that of Bitcoin.
Gary Gensler
The resignation of SEC Chairman Gary Gensler is also considered a reason for the rise in XRP prices.
Gensler's tenure was hostile to the cryptocurrency industry. He left on January 20, the day of Trump's inauguration, and many viewed this as a positive signal for Ripple.
The rise in XRP's price has been suppressed by Ripple's long legal battle with the agency. Azizov noted that with Gensler's departure, this struggle may come to an end, potentially leading to more growth for cryptocurrencies.
Altcoin Rotation
Following Trump's victory, Bitcoin prices soared to nearly $100,000.
Meanwhile, Bitcoin's dominance, which is the proportion of its market cap to the total value of the cryptocurrency market, has dropped from 60% last week to 53%.
Crypto research firm 10x Research stated in an article last week that historically, as the market value of cryptocurrencies increases, the decline in Bitcoin's dominance often marks the beginning of altcoin season, when attention shifts to other cryptocurrencies like XRP.
XRP ETF
Following the success of spot Bitcoin and Ethereum exchange-traded funds this year, Solana and XRP are competing to become the next cryptocurrencies to gain ETF approval.
Garlinghouse himself has stated that he believes an XRP ETF is 'inevitable.'
Bitwise Asset Management, Canary Capital, 21Shares, and WisdomTree have submitted XRP spot ETF filings to the SEC.
André Dragosch, Head of Research at Bitwise Europe, stated in a research report last week that if the XRP ETF is approved, it could drive up prices.
With Trump taking office next year, market analysts predict that the path to launching more cryptocurrency ETFs may become easier.
Especially if Trump chooses someone who supports cryptocurrencies to lead the SEC.
