The cryptocurrency market is in a state of activity after witnessing a seismic shift. The XRP token, which supports the Ripple ecosystem, has surpassed the $2.4 mark, solidifying its position as the third largest cryptocurrency by market capitalization.
Currently, XRP's market capitalization has surpassed $135.37 billion. This exceeds the stablecoins USDT ($134.17 billion) and Solana ($108.01 billion). This achievement has sparked renewed discussions about the possibility of XRP challenging Ethereum's market dominance.
Ripple surpasses USDT and Solana
The price of XRP at the time of writing this article stands at $2.4, registering an astonishing increase of 25.57% since the opening of Monday's trading session.
Cryptocurrency enthusiasts speculate that its upward trajectory could eventually see it rival Ethereum (ETH), which is currently valued at $441.46 billion.
There are also rumors that Garlinghouse is a potential "crypto czar" candidate for Donald Trump. Such a move could enhance XRP's position, especially with Trump's rumored pro-crypto stance.
At the same time, XRP's surge coincides with a renewed focus on Ripple's high-profile legal battle with the U.S. Securities and Exchange Commission. The case began in December 2020, and XRP has experienced significant market volatility and regulatory uncertainty.
Ripple against SEC
XRP had regained its value before the lawsuit, reminiscent of the time before the SEC deemed Bitcoin and Ethereum not to be securities in 2018, prior to Hinman's speech in June of that year under the argument of "sufficient decentralization." After the speech, Ethereum's market capitalization surpassed XRP's in November 2018.
The so-called "Hinman documents," obtained through discovery in the Ripple case, showed that some SEC officials disagreed with the contents of the letter. They were particularly concerned about its implications for the regulatory status of other cryptocurrencies, which remains unclear. Despite these revelations, XRP's regulatory status remains unresolved, and legal experts predict that the issue could extend until July 2025.
Attorney John Deaton, an outspoken advocate for Ripple and XRP investors, has committed to continue supporting the cause, even after being unable to run for the Senate. His persistence reflects the importance of the issue for the cryptocurrency industry as a whole.
At the same time, the SEC's aggressive stance on cryptocurrencies under Gary Gensler's administration has drawn widespread criticism, with increasing calls for regulatory clarity. Gensler's anticipated resignation could mark a turning point. Observers suggest that his departure could pave the way for a more cryptocurrency-friendly regulatory environment, especially under a pro-crypto administration.
The general opinion is that the current Trump administration may pave the way for cryptocurrency-friendly policies. Under such management, Ripple's legal situation could improve, potentially ending years of regulatory uncertainty.
However, despite the recent gains, analysts warn of a potential profit-taking among XRP whales amid significant increases in whale transactions to exchanges.
An analyst wrote in a forum:
"Historically, spikes in whale transactions to trading platforms (indicated by red circles) closely correspond with XRP's price peaks. This indicates that whales tend to move large amounts of XRP to trading platforms to sell near local or periodic peaks. Activity has reached trading platforms, and XRP hit a local price of around $2.4. This may indicate that whales are preparing to take potential profits or increase market activity.
