- XRP reclaims third spot with $138.4B market cap, surpassing Tether amid strong rally.
- Pro-crypto promises and SEC leadership changes boost XRP’s regulatory optimism.
- Whale Alert reports $1.7B XRP transfers, signaling heightened activity and market shifts.
The competition for the third-largest cryptocurrency by market capitalization has intensified, with XRP overtaking Tether (USDT). At press time, XRP’s market cap stands at $138.4 billion, slightly ahead of Tether’s $137.1 billion. This development has reignited interest in XRP as it climbs the ranks amid a broader market rally and improving sentiment around its regulatory prospects.
XRP Soars Past $2 Amid Broader Market Rally
XRP’s recent surge past $2 has been fueled by broader market momentum, including gains in Bitcoin and Solana (SOL). The rally gained further traction following Republican Donald Trump’s victory in the November 5 presidential election. His pro-crypto promises during the campaign have bolstered market optimism, particularly for tokens like XRP, which have faced regulatory hurdles.
This resurgence comes after a challenging period for XRP, marked by the SEC’s lawsuit against Ripple over alleged securities violations. Previously at risk of falling out of the top 10 cryptocurrencies, XRP has now reclaimed its position among the top three.
Additionally, the resignation of SEC Chair Gary Gensler, effective January 20, 2025, aligns with growing investor confidence in a potentially friendlier regulatory environment under the new administration.
Regulatory Optimism and Whale Movements Drive Momentum
XRP’s rally is supported by increasing confidence in its regulatory future and its potential adoption in financial applications like ETFs. Market participants are also eyeing the possible reduction of regulatory challenges, which could help solidify XRP’s market presence.
Moreover, data from Whale Alert highlights significant transactions during this period. Notably, 500 million XRP worth $1.07 billion was unlocked from escrow, and 300 million XRP worth $649.8 million was transferred to an unidentified wallet. These movements suggest heightened activity among large holders, often a precursor to major market shifts.
Analyst Insights and Future Prospects
An analyst under the name, STEPH IS CRYPTO, noted a tightening of XRP’s Bollinger Bands on the daily chart, signaling potential price volatility. According to the analyst, similar patterns in the past have led to substantial price surges, raising speculation about another explosive move.
At the time of publication, XRP is trading at $2.39 with a 24-hour trading volume exceeding $10 billion, which is 13.8% up over the past day.
