Author: 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 and becoming the third most valuable cryptocurrency globally.
Although still below its 2018 high of $3.40, Arthur Azizov, CEO of enterprise crypto payment platform B2BinPay, noted that many factors indicate that the cryptocurrency issued by U.S. blockchain company Ripple could break this record.
Trump's victory
Azizov stated 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 sparked a return of bullish sentiment in the cryptocurrency market, as investors bet that the elected president would fulfill promises to support cryptocurrencies. Since the election, the market capitalization of cryptocurrencies has soared by 42% to $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, surpassing the percentage gains of well-known cryptocurrency competitors Bitcoin, Ethereum, and Solana.
Trading frenzy
The surge in XRP prices also coincided with a trading frenzy, particularly as 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 cryptocurrency, leading to the delisting of its trading application after XRP faced regulatory scrutiny. In August, a U.S. judge imposed a $125 million fine on Ripple. Garlinghouse referred to this ruling as a victory for the company.
Ki Young Ju, CEO of crypto analytics platform CryptoQuant, stated that Coinbase whales are driving XRP's rise.
Young Ju noted that the intense XRP trading activity on Coinbase, compared to more retail-focused platforms like Upbit, has led to a price premium for the cryptocurrency.
Data from crypto analytics platform Scopescan indicates that South Korean retail investors also contributed to the surge in XRP prices.
In the past 24 hours, XRP trading volume on Asian exchanges like Upbit and Bithumb has 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 marked by an adversarial attitude toward the cryptocurrency industry. He left on January 20, the day of Trump's inauguration, which many viewed as a positive signal for Ripple.
The rise in XRP prices has been suppressed due to Ripple's long legal battle with the agency. Azizov pointed out that with Gensler's departure, this struggle may come to an end, potentially bringing more growth for cryptocurrencies.
Altcoin rotation
After Trump's victory, Bitcoin prices soared to nearly $100,000.
Meanwhile, Bitcoin's dominance, which is the proportion of its market cap relative to the total cryptocurrency market value, has dropped from 60% last week to 53%.
Cryptocurrency 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 signals the start 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.
