The crypto market is buzzing after witnessing a seismic shift. XRP, the token that powers the Ripple ecosystem, has surpassed the $2 mark, cementing its position as the third-largest cryptocurrency by market cap.
With its market cap now exceeding $135.37 billion, XRP has outperformed both the stablecoin USDT ($134.17 billion) and Solana ($108.01 billion). This has sparked fresh debates about its potential to challenge Ethereum’s dominance.
XRP Enters Top 3
XRP was trading at $2.37 at the time of writing, an impressive 25.57% increase since the opening of Monday's session (2).
XRP Price Performance. Source: BeInCrypto
Crypto enthusiasts speculate that its upward trajectory could eventually rival Ethereum (ETH), currently valued at $441.46 billion. Crypto enthusiast Amelie highlighted a recent meeting between Cardano founder Charles Hoskinson and Ripple CEO Brad Garlinghouse.
Rumors have also surfaced about Garlinghouse being a candidate for Donald Trump's potential crypto czar. Such a move could further elevate XRP's status, especially with Trump's reported pro-crypto stance.
Meanwhile, XRP’s resurgence coincides with renewed focus on Ripple’s high-profile legal battle with the U.S. SEC. The case, which began in December 2020, has seen XRP face significant market fluctuations and regulatory uncertainty.
Ripple vs. SEC amid potential US changes
XRP has regained its pre-lawsuit valuation, reminiscent of the time before the SEC deemed Bitcoin and Ethereum non-securities in 2018, prior to Hinman’s speech in June of that year under the “sufficiently decentralized” argument. Following the speech, Ethereum’s market cap surpassed that of XRP in November 2018.
The so-called “Hinman emails,” obtained through discovery in the Ripple case, showed some officials within the SEC disagreeing with the content of the speech. Specifically, they were concerned about its implications for the regulatory status of other cryptocurrencies, which remains unclear. Despite these revelations, the regulatory status of XRP remains unresolved, with legal experts predicting the case could stretch into July 2025.
Attorney John Deaton, a vocal advocate for Ripple and XRP investors, has vowed to continue supporting the case even after its failed Senate bid. His persistence reflects the importance of the case to the crypto industry at large.
Meanwhile, the SEC’s aggressive stance on crypto under Chairman Gary Gensler has drawn widespread criticism, with calls for regulatory clarity growing. Gensler’s early resignation could mark a turning point. Observers suggest his departure could pave the way for a more crypto-friendly regulatory environment, particularly with the arrival of a pro-crypto administration.
Furthermore, the general opinion is that an incumbent Trump administration could introduce crypto-friendly policies. Under such an administration, Ripple’s legal position could improve, potentially ending years of regulatory uncertainty.
However, despite recent gains, analysts warn of the possibility of profit-taking among XRP whales amid significant spikes in whale-to-exchange transactions.
Historically, significant spikes in whale-to-exchange transactions (marked by red circles) align closely with XRP price spikes. This suggests that whales tend to move large amounts of XRP to exchanges to sell near local or cycle tops. The latest spike in whale-to-exchange activity coincides with XRP reaching a local price of around $2.3. This could indicate whales preparing for potential profit-taking or increased market activity, a CryptoQuant analyst wrote.
The article XRP hits $2, surpasses USDT and SOL in market value appeared first on BeInCrypto Brazil.
