XRP Continues Its Remarkable Comeback

Over the past week, XRP, the digital asset associated with Ripple Labs, has experienced a remarkable surge, catapulting its market capitalization beyond the $100 billion mark—a level not seen since 2018. This resurgence is largely attributed to growing anticipation surrounding the imminent approval of Ripple’s stablecoin, RLUSD, by the New York Department of Financial Services (NYDFS).

As of December 1, 2024, XRP’s price has increased by approximately 23% over the past seven days, reaching around $2.45 per token. On Saturday, XRP hit a price milestone not seen in nearly seven years, surging to $1.93.This marks a significant moment for XRP, surpassing its 2021 peak of $1.92. The last time XRP was valued at $1.93 was back in January 2018, shortly after hitting its all-time high of $3.40. This comeback is nearly seven years in the making, and the momentum is far from over. Currently trading at $2.45, XRP has risen almost 45% over the past week and boasts a staggering 393% increase over the past month, according to BNC data.

Source: BNC XRPLX

As a result of the price surge, XRP has now overtaken Solana on the Brave New Coin market Cap table.

Source: BNC

Why the Rally?

The renewed interest in XRP is fueled by a combination of optimism surrounding Trump’s crypto-friendly administration and speculation over changes at the Securities and Exchange Commission (SEC). Under current SEC Chair Gary Gensler, the agency has aggressively targeted crypto firms, with Ripple Labs being one of its primary adversaries. Ripple has long fought the SEC over the classification and sale of XRP, leading to years of legal battles. However, with Gensler recently announcing his resignation effective January 20, 2025—the same day Trump is set to take office—investors are betting on a more favorable regulatory environment for Ripple and the broader crypto market.

The prospect of regulatory clarity is a game-changer for Ripple. With Gensler’s exit, there’s growing speculation that the long-standing legal disputes around XRP could be resolved, paving the way for institutional adoption and innovative use cases. This regulatory optimism is also inspiring companies like WisdomTree and Bitwise to push for XRP-based exchange-traded funds (ETFs), which could further boost demand for the digital asset.

Another primary catalyst for this bullish momentum is the expected regulatory approval of RLUSD, Ripple’s U.S. dollar-pegged stablecoin. Reports indicate that the NYDFS is poised to approve RLUSD, with a potential launch date as early as December 4, 2024.

This development is seen as a pivotal step for Ripple, enabling it to offer a stable digital asset fully backed by U.S. dollar deposits, government bonds, and cash equivalents.

The introduction of RLUSD is expected to enhance Ripple’s On-Demand Liquidity (ODL) platform, providing a stable medium for cross-border transactions and potentially challenging traditional systems like SWIFT. Moreover, the approval of RLUSD could alleviate regulatory concerns, especially in light of the SEC’s previous scrutiny of Ripple’s operations.

The Road Ahead

With its recent rally, XRP is cementing its place as one of the most resilient and promising cryptocurrencies. The potential for a more lenient regulatory environment under Trump’s administration could unlock new opportunities for Ripple and its native token. Meanwhile, the possibility of an XRP-focused ETF adds another layer of excitement, as it could drive institutional investment and mainstream adoption.

XRP’s meteoric rise is more than just a price story—it’s a testament to the crypto market’s ability to rebound and thrive in the face of challenges. As the regulatory landscape shifts and innovation continues to flourish, XRP could very well be poised for another historic run. XRP price predictions to the moon are now appearing on TikTok as XRP mania spreads.

Source: Trading View