XRP Sees Significant Surge in Market Value
Ripple’s cryptocurrency, XRP, experienced an impressive jump of 30% on Monday, propelling it ahead of Tether (USDT) in terms of market capitalization. This increase positions XRP as the third-largest cryptocurrency in the market. The rally isn’t merely a flash in the pan; it has intensified over several weeks, driven by a variety of recent catalysts.
Currently, XRP is trading at approximately $2.46, reflecting a staggering 77% increase over the past week and an astonishing rise of over 375% in the last month. The token’s market capitalization reached $137.4 billion, surpassing USDT’s valuation of $134.3 billion. XRP’s ascent also marks a significant milestone, as it recently surpassed Solana’s market cap over the weekend.
Ripple’s RLUSD Stablecoin Anticipated Approval
The recent price surge can be largely attributed to rumors surrounding the potential approval of Ripple’s RLUSD stablecoin by the New York Department of Financial Services (NYDFS). Insiders have indicated to Fox Business that NYDFS might soon grant Ripple the necessary green light, with a launch date targeted for December 4.
Securing this approval would allow Ripple to enter the highly regulated New York digital finance market, significantly enhancing its position in the evolving stablecoin ecosystem. The introduction of RLUSD would allow Ripple to directly compete with established stablecoins such as Tether’s USDT and Circle’s USDC.
Ripple intends to incorporate RLUSD into the RippleNet payment platform, which would aim to streamline and reduce the costs associated with cross-border transactions. The new stablecoin is expected to serve as a liquidity bridge within Ripple’s ecosystem, particularly as XRP itself has faced various regulatory challenges within the United States.
Growing Hopes for an XRP ETF
XRP’s momentum began to take shape in early November following a series of Republican victories in the US elections, which has bolstered confidence in US-based cryptocurrencies, including Ripple Labs’ XRP. Investors are also laying the groundwork for a possible XRP exchange-traded fund (ETF) in the US, with expectations for a more accommodating regulatory environment.
While no XRP ETF has yet launched in the US, potential issuers are preparing to take advantage of favorable regulatory changes. Approval of an XRP ETF could represent a monumental shift, enabling broader access to XRP through conventional investment avenues.
Additionally, recent developments – including the announcement from SEC Chair Gary Gensler, who is set to resign in January – could positively influence Ripple’s ongoing legal disputes with the SEC. The company has been embroiled in legal challenges since December 2020, when the SEC accused Ripple Labs of unlawfully selling XRP as an unregistered security. This lawsuit has had dire consequences for XRP’s market standing, resulting in numerous delistings across exchanges and a significant decline in its value.