Ripple's XRP has overtaken BNB to become the fifth-largest cryptocurrency by market capitalization. The market cap of XRP reached $99 billion on Friday, the highest in over three years.
XRP is witnessing a strong price surge as the altcoin has increased over 230% in November.
Is the price of XRP on the road to a historical comeback?
Despite being one of the largest altcoins in the market, XRP has underperformed in every bull market over the past three years. Ripple's prolonged legal battle with the SEC has significantly impacted the market performance of the altcoin.
However, long-term holders of the token are ultimately seeing the potential rewards. Donald Trump's re-election and his promise of regulatory clarity have created notable institutional interest in the token.
XRP price throughout November 2024. Source: BeInCrypto
The current SEC chairman, Gary Gensler, has been a constant obstacle for Ripple. However, his resignation earlier this month has created optimism that Ripple may finally escape the SEC's scrutiny.
This optimism has been reflected in the recent actions of major institutional investors. Last week, WisdomTree, one of the largest global asset managers, filed for an XRP ETF in Delaware. This is the third ETF application for XRP, as Bitwise and Canary Capital joined the race in October.
"Ripple is preparing for major upgrades to the XRP Ledger, designed to enhance liquidity and attract institutional investors. This surge in activity could channel hundreds of millions into the XRPL token, especially in the DeFi space," Brett wrote on X (formerly Twitter).
If approved, an XRP ETF will attract more institutional funds into altcoin and has the potential to boost its market demand. A similar trend occurred with BTC, as the approval of the Bitcoin ETF showed a surge in institutional demand for cryptocurrency.
Most importantly, the Trump administration may provide an optimal legal framework for cryptocurrency in 2025. The elected president has reportedly considered reducing capital gains taxes for all U.S.-based cryptocurrencies, including XRP.
It is also worth noting that Ripple's CEO, Brad Garlinghouse, has actively contributed to Trump's campaign. Furthermore, he recently donated $25 million to the 2026 U.S. midterm elections, even before the Trump administration begins in January.
Therefore, we are likely to see a very favorable regulatory environment for XRP in the U.S., which could potentially boost altcoin demand.
