NAIROBI (CoinChapter.com)— Ripple (XRP) has captured attention with its impressive rally, trading at $1.16 and boasting a market capitalization of $66.27 billion as of Nov. 18. The token has surged 101% over the past week, reigniting speculation about its potential return to the No. 2 spot in market capitalization rankings.
Can XRP Regain Its 2018 Peak?
XRP briefly claimed the No. 2 spot in early 2018, overtaking Ethereum during the market bull run. On Jan. 4, 2018, its market capitalization peaked at $146 billion, marking a historic moment for Ripple’s native token. At the time, XRP reached an all-time high of $3.84, cementing its position as a key player in the crypto market.
XRP/USD 1-day chart. Source: CoinMarketCap
XRP’s recent rally is linked to rumors of SEC Chairman Gary Gensler’s possible departure. A leadership change could bring pro-crypto policies, offering Ripple and XRP clearer regulatory support.
SEC Leadership Shake-Up Sparks Optimism
Rumors of SEC Chair Gary Gensler’s resignation have fueled XRP’s rally. Fox Business reporter Eleanor Terrett stated Gensler may step down by early Jan., ahead of President-elect Donald Trump’s inauguration.
Gensler rumored to step down by January. Source: Eleanor Terrett
Terrett noted that pro-crypto candidates like SEC Commissioners Mark Uyeda and Hester Peirce, as well as former CFTC Chair Heath Tarbert, are being considered as potential replacements. If appointed, such leadership could signal a shift in the SEC’s approach to digital asset regulation.
Garlinghouse hints at Gensler’s exit, US crypto rise. Credit: X
Moreover, Ripple CEO Brad Garlinghouse, speaking at Cantor’s annual Crypto Conference, expressed optimism for a shift toward balanced crypto regulations. He criticized SEC Chairman Gary Gensler’s enforcement-focused policies, which have cost the industry $426 million in litigation since 2021. Legal experts suggest new leadership could reshape high-profile cases like Ripple’s, fostering a more supportive environment for crypto innovation.
Whale Accumulation and Market Impact
Notably, on-chain data reveals a surge in whale activity, with wallets holding over one million XRP accumulating 3.44 billion tokens in two years. These whales now control 45.61 billion XRP, the highest total since 2018—the year XRP reached its all-time high of $3.84.
XRP whales accumulate 45.61B tokens in 2023. Credit: Santiment
The accumulation also coincides with Ripple’s partial legal victory in July 2023, when a court ruled certain XRP sales did not qualify as securities transactions. Although the SEC has continued its appeal, market sentiment remains bullish.
XRP breaks triangle pattern; $5 predicted. Source: X
Predictions for XRP’s future remain divided. Some analysts forecast a breakout to $5, while others, such as Coincodex, predict a more modest $1.13 by Dec. 2024. For XRP to reclaim its No. 2 ranking, it must overcome legal and market challenges while sustaining its current momentum.
Above all, whether XRP can reclaim its No. 2 spot depends on several factors, including potential regulatory clarity under new SEC leadership, sustained market demand, and further whale accumulation. The coming months could determine whether XRP’s recent rally is the beginning of a broader resurgence.
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