The cryptocurrency market is buzzing after a major development as XRP, the token driving Ripple’s ecosystem, soared past $2, cementing its position as the third-largest cryptocurrency by market capitalization. As of now, XRP has surpassed the USDT stablecoin ($134.17 billion) and Solana ($108.01 billion), sparking renewed conversations about its potential to rival Ethereum’s dominance.
On Monday, XRP surged over 30%, outperforming competitors like Cardano, Stellar, and Tron. The rally was fueled by two key factors: the New York Department of Financial Services’ recent approval of Ripple’s RLUSD stablecoin, expected to launch around December 4, and speculation that a potential shift in SEC leadership under President-elect Donald Trump could usher in more lenient regulations for the crypto industry.
With its ties to established financial institutions, XRP’s value could be bolstered by increased adoption and usage. The asset’s speed – it can process 1,500 near-instantaneous transactions per second – and low transaction fees could encourage widespread adoption. Moreover, its consensus mechanism is less energy-intensive than proof-of-work systems like Bitcoin’s.
As such, a resurgence in interest in the Ripple network, combined with a rumored ETF for XRP from WisdomTree and a surge in institutional investment, could boost its market dominance. However, some analysts caution that XRP’s market cap is far behind its intrinsic value, arguing that the company’s recent gains are mainly due to investor excitement.
Nevertheless, the price of XRP is rapidly climbing towards its pre-lawsuit valuations. The asset’s current price of $2.50 is nearly fourfold higher than the lows registered in late 2020 after the SEC decided to drop its lawsuit against Ripple.
Although some analysts believe XRP can eventually surpass Ethereum in terms of market cap, others caution that the prospect is highly speculative. For that to occur, a number of factors would need to align, including continued bullish momentum, institutional investment, and regulatory changes. The development of XRP wallets, banking platforms, and a broader range of products and services may also play a significant role.
In addition, some analysts point to the growing popularity of search trends on Google to support their assertion that XRP is quickly gaining traction. In November, searches for XRP broke above those for Bitcoin and Ethereum, according to Google Trends data.
