On December 2, XRP's market capitalization surpassed USDT and Solana, rising to the third place among cryptocurrencies, and it also surpassed Pinduoduo, ranking 138th among global mainstream assets. As XRP's price broke through $2, it also set a new high since April 2021.
Behind XRP's rise, Ripple's CEO mentioned that the Trump administration could bring new hope to the crypto industry, and XRP may be on the brink of a turnaround. The unexpected turnaround came swiftly, with XRP's increase in the past month reaching 400%. So, in light of such an astonishing increase, is it still possible to consider entering XRP?
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 could bring a turning point for XRP, and since then, XRP's price began to surge.
According to CoinMarketCap data, as of now, XRP's price has risen from $0.5 to nearly $2.5, an increase of 400%.
At the peak of the bull market in April 2021, XRP reached $1.966, but then declined until it recently recovered to new highs. During this time, the price of XRP once dropped to $0.287.
The surge of XRP not only significantly raised its market capitalization, but also surpassed USDT and Solana, becoming the third-largest cryptocurrency by market cap, approaching $140 billion. Compared to traditional enterprises, XRP has also surpassed Pinduoduo, ranking 136th among global mainstream assets.
Moreover, XRP's trading volume on major exchanges is also very active. The XRP/KRW trading volume on the South Korean exchange Upbit reached $3.8 billion in 24 hours, which is 11 times the trading volume of BTC and even exceeds the trading volume of XRP on Binance. Bithumb's XRP/KRW trading volume also reached $1.2 billion, accounting for 32% of the 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, growing by 100%, and the number of new accounts added in November also significantly increased, indicating a large influx of new users into the network.
2. Multiple favorable factors boost XRP's rise
1. Expectations of policy easing
After Trump took office, expectations for policy easing in the crypto industry increased, which also brought more opportunities for XRP. Ripple's CEO stated that Trump might resolve Ripple's years-long legal disputes, bringing a turning point for XRP.
There are reports that Trump may meet with Ripple CEO and other representatives from the crypto industry to discuss US crypto policy. Companies like Ripple are also vying to join Trump's crypto committee, aiming to secure a place in future policy reforms.
The former chairman of the CFTC also predicted that the SEC might drop its lawsuit against Ripple, a change that could drive up XRP's price.
2. XRP ETF and financial products launch
Ripple's CEO stated that the launch of the XRP ETF is almost a certainty. Bloomberg's ETF analysts also believe that ETFs for altcoins like XRP may be approved by the end of 2025, and they expect that the new SEC leadership may be more favorable 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, with plans to launch on December 4. If approved, this would make Ripple an important player in New York's regulated digital financial market, competing with stablecoin issuers like Circle and Paxos.
Additionally, the XRP ETP launched by WisdomTree on European exchanges is also drawing significant attention, as this product will be 100% backed by spot XRP and will use cold wallet storage with dual custody.
3. Whale investments boost
The trading volumes of XRP on South Korean exchanges Upbit and Bithumb reached $3.8 billion and $1.2 billion, respectively, suggesting 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 instance, at the end of September, Ripple whales purchased over 470 million XRP within 10 consecutive days. Furthermore, in early November, 400 million XRP were unlocked from an unknown wallet, valued at approximately $203 million.
Despite XRP's remarkable price increase and multiple favorable factors, 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, XRP's resurgence is a significant breakthrough. Recent favorable factors, including changes in regulatory policies, the launch of the XRP ETF, and whale investments, have led investors to have high expectations for XRP. However, there is a tradition in the crypto community that tends to favor new projects over established ones. Whether XRP can continue to maintain its strength and even achieve new glory will take time to verify.