The cryptocurrency market is in a state of activity after witnessing a seismic shift. The XRP token, which powers the Ripple ecosystem, has surged past the $2.37 mark, cementing its position as the third-largest cryptocurrency by market cap.
Currently, XRP’s market cap has surpassed $135.37 billion. This has outperformed stablecoins USDT ($134.17 billion) and Solana ($108.01 billion). This achievement has sparked fresh debate about whether XRP could challenge Ethereum’s market dominance.
Ripple Overtakes USDT and Solana
At the time of writing, XRP is trading at $2.37, marking a staggering 25.57% gain since the opening of the trading session on Monday.
Cryptocurrency enthusiasts speculate that its upward trajectory could eventually see it rival Ethereum (ETH), which is currently valued at $441.46 billion.
Garlinghouse has also been rumored to be a potential candidate for Donald Trump’s “crypto czar.” Such a move could boost XRP’s standing, especially given Trump’s reported pro-crypto stance.
At the same time, XRP’s rally coincides with renewed focus on Ripple’s high-profile legal battle with the U.S. Securities and Exchange Commission. The case began in December 2020, and XRP has seen significant market volatility and regulatory uncertainty.
Ripple v. SEC
XRP has recovered its value before the lawsuit, reminiscent of the time before the SEC deemed Bitcoin and Ethereum non-securities in 2018 prior to Hinman’s letter in June of that year under the pretext of “sufficient decentralization.” After the letter, Ethereum’s market cap surpassed that of XRP in November 2018.
The so-called “Hinman letters,” obtained through discovery in the Ripple case, showed that some officials within the SEC were at odds with the content of the letter. They were particularly concerned about its implications for the regulatory status of other cryptocurrencies, which remains unclear. Despite these revelations, XRP’s regulatory status remains unresolved, with legal experts predicting that the case could drag on until July 2025.
Attorney John Deaton, an outspoken advocate for Ripple and XRP investors, has vowed to continue supporting the case, even after his unsuccessful bid for Senate. His persistence reflects the importance of the case to the cryptocurrency industry as a whole.
Meanwhile, the SEC’s aggressive stance on cryptocurrencies under Gary Gensler has drawn widespread criticism, with calls for regulatory clarity growing. Gensler’s expected resignation could mark a turning point. Observers suggest his departure could pave the way for a more crypto-friendly regulatory environment, especially under a pro-crypto administration.
The general sentiment is that the current Trump administration may open the door to favorable policies for cryptocurrencies. Under such an administration, Ripple’s legal status may improve, potentially ending years of regulatory uncertainty.
However, despite the recent gains, analysts are warning of potential profit-taking among XRP whales amid significant spikes in whale-to-exchange trades.
An analyst wrote in a forum:
“Historically, large spikes in whale transactions to exchanges (indicated by red circles) have closely coincided with XRP price peaks. This suggests that whales tend to move large amounts of XRP to exchanges to sell near local or cyclical peaks. The recent spike in whale activity to exchanges coincides with XRP reaching a local price of around $2.3. This could indicate that whales are preparing to take potential profits or increase market activity.”