Ripple’s XRP, the cryptocurrency linked to Ripple Labs, has soared to become the third-largest digital asset in a remarkable $100 billion rally. Following Donald Trump’s victory in the U.S. presidential election, XRP’s market capitalization surged from less than $30 billion on November 5 to over $154.6 billion, according to CoinGecko data.
XRP’s Meteoric Rise
The price of XRP rose by 32% on Monday, reaching $2.87. This growth was propelled by:
- Increased Overseas Buying: Primarily from South Korea.
- Short Liquidations: Over $60 million in XRP short positions were liquidated in 24 hours, surpassing combined Bitcoin and Ether liquidations.
Edward Chin, co-founder of Parataxis Capital, stated:
“The move seems to be entirely retail-driven as nothing has fundamentally changed for XRP itself. However, the market’s reflexivity can sustain the rally.”
Trump Victory Spurs Speculative Enthusiasm
Donald Trump’s election victory has sparked optimism in the cryptocurrency market. The President-elect’s promises to foster a favorable regulatory environment for digital-asset firms have driven speculative investments.
Key developments include:
- Surpassing Rivals: XRP’s market value now exceeds Solana and USDT (Tether).
- Trump’s Crypto Agenda: Plans to dismiss SEC Chair Gary Gensler and appoint crypto-friendly regulators, alongside backing a strategic Bitcoin stockpile, have bolstered confidence.
Ripple Labs and Legal Challenges
Ripple Labs is still dealing with the fallout of a 2020 lawsuit from the U.S. Securities and Exchange Commission (SEC), which alleged XRP was sold as an unregistered security. However, the anticipation of regulatory reforms under Trump’s administration is seen as a potential tailwind for Ripple and other digital-asset firms.
Broader Market Momentum
The crypto market has gained approximately $1.2 trillion in market value since Trump’s win, with major cryptocurrencies like Bitcoin and Ether seeing substantial gains:
- Bitcoin (BTC): Trading near $95,760, close to its $100,000 milestone.
- Ether (ETH): Priced at $3,613, maintaining its position as the second-largest cryptocurrency.
Outlook
XRP’s rally showcases the speculative potential of the crypto market, driven by retail enthusiasm and anticipated regulatory changes. As Trump prepares to take office, the evolving regulatory landscape is likely to shape the future of XRP and other digital assets.
