On December 2, XRP's market capitalization surpassed USDT and Solana, jumping to third place in cryptocurrency market cap, and also exceeding Pinduoduo, ranking 138th among global mainstream assets. With XRP's price breaking through $2, this also marked a new high since April 2021.
Behind the rise of XRP, Ripple's CEO mentioned that the Trump administration might bring new hope to the crypto industry, and XRP could potentially see a turnaround. Unexpectedly, this turnaround came so quickly, with XRP's increase reaching 400% in the past month. So, in light of such an astonishing increase, is it still possible to consider entering XRP now?
1. The explosion of XRP
At the beginning of November this year, XRP's price hovered around $0.5. However, on November 10, Ripple's CEO made a statement that Trump might bring a turnaround for XRP, and since then, the price of XRP began to soar.
According to CoinMarketCap data, as of now, XRP's price has risen from $0.5 to nearly $2.5, an increase of 400%.
During the peak of the bull market in April 2021, XRP reached $1.966 but subsequently declined until now when it has returned to new highs. During this period, the price of XRP once fell to $0.287.
The surge of XRP not only significantly increased its market capitalization but also surpassed USDT and Solana, becoming the third-largest cryptocurrency by market cap, which is nearly $140 billion. Compared to traditional companies, XRP also exceeded Pinduoduo, ranking 136th among global mainstream assets.
In addition, XRP's trading volume on major exchanges is also very active. The 24-hour spot trading volume of XRP/KRW on the South Korean exchange Upbit reached $3.8 billion, which is 11 times that of BTC's trading volume, and even surpassed the trading volume of XRP on Binance. The trading volume of XRP/KRW on Bithumb also reached $1.2 billion, accounting for 32% of total trading volume.
On-chain data for XRP also shows positive signs of recovery. According to xrpscan data, the number of active XRP accounts doubled in November, increasing by 100%, and the number of new accounts added in November also rose sharply, indicating that a large number of new users are entering the network.
2. Multiple favorable factors boost XRP's rise
1. Expectations of policy relaxation
After Trump took office, expectations for policy relaxation in the crypto industry increased, bringing more opportunities for XRP. Ripple's CEO stated that Trump might resolve Ripple's long-standing legal disputes, bringing a turnaround for XRP.
It is reported that Trump may meet with Ripple CEO and other representatives from the crypto industry to discuss U.S. crypto policy. Companies like Ripple are also seeking to join Trump's crypto committee to secure a place in future policy reforms.
The former chairman of the CFTC in the U.S. also predicted that the SEC might drop the lawsuit against Ripple, and this change is expected to drive up the price of XRP.
2. The launch of XRP ETFs and financial products
Ripple's CEO stated that the launch of the XRP ETF is almost a certainty. Bloomberg's ETF analysts also believe that ETFs for XRP and other altcoins may be approved by the end of 2025, and they expect that the new SEC leadership may be more friendly towards cryptocurrencies, possibly allowing ETF products to have staking features.
Ripple may also receive approval from the New York Department of Financial Services to issue the stablecoin RLUSD, planned for launch on December 4. If approved, this would make Ripple an important player in the regulated digital finance market in New York, competing with stablecoin issuers like Circle and Paxos.
In addition, the XRP ETP launched by WisdomTree on European exchanges is also gaining attention. This product will be 100% supported by spot XRP and will use cold wallet storage and a dual custody model.
3. Whale investments boost
The trading volumes of XRP on the South Korean exchanges Upbit and Bithumb reached $3.8 billion and $1.2 billion, respectively, with analysts believing that South Korean investors may be the main force driving up XRP's price.
Additionally, Ripple's whales are continuously increasing their holdings of XRP. For example, at the end of September, Ripple whales purchased over 470 million XRP within 10 consecutive days. Furthermore, at the beginning of November, 400 million XRP were unlocked from an unknown wallet, valued at approximately $203 million.
Despite XRP's remarkable increase and the various favorable factors supporting it, some analysts still express caution:
CryptoQuant analysts believe that XRP's open contracts have increased by 37%, which may lead to a price correction. Moreover, the current target price for XRP may be between $1.95 and $2.05.
Summary
As an established project, the resurgence of XRP represents a significant breakthrough. Recent favorable factors include changes in regulatory policy, the launch of the XRP ETF, and whale investments, all of which have led investors to have high expectations for XRP. However, there is a tradition in the crypto space that tends to favor new projects over established ones. Whether XRP can continue to maintain its strength, or even achieve new glory, still requires time to verify.