XRP’s 380% rise in a month catapulted the cryptocurrency into the limelight. The market cap of Tether and solana has been flipped today. XRP has a market capitalization that is already near its highest point, with a FDV (fully diluted value) now twice the size of SOL. This reflects a mixture of regulatory clarity, adoption of network technology and speculative fervor.
Market sentiment and political winds
The resolution of RippleLabs’ long-running legal dispute with the US SEC was one of the main drivers of XRP’s explosive rise. Following years of uncertainty the SEC imposed a $125m penalty, which was significantly lower than their initial demand for $2bn. It removed the massive cloud over XRP allowing retail and institutional investors to enter the market again with confidence.
John E. Deaton, an attorney at Deaton Law Firm in New York City, says that the significance of XRP’s legal win transcends price movement. Deaton has been a leading advocate of XRP token holders that sued the SEC for its 2020 enforcement actions. Deaton cited the SEC’s assertion that all XRP tokens are illegal, regardless their use case, or under what circumstances they were obtained, which is unprecedented. “gross overreach.”
US elections have also contributed to XRP’s rise. Trump’s election has been perceived as a sign of more favorable regulations for cryptocurrency. “homegrown” Networks were first launched by US firms.
This has helped to drive bidding in previous cycles for similar stars.
Mena Theodorou is co-founder of the crypto exchange Coinstash.
“The resurgence of many of these older coins highlights the muscle memory of retail traders, who likely got their first exposure to the crypto markets through these coins and are now returning to their favourites as they re-enter the current bull market,” Theodorou said Blockworks.
Many people see XRP as a means of achieving financial freedom. “comeback story,” The narrative is a great way to build momentum.
The Rise of XRP Memecoins
Memecoins are another recent factor which has led to XRP’s rapid growth. The gambling community has shown interest in tokens like DROP and SIGMA (if they know how to utilize the chain).
Every ecosystem offers low transaction fees and high-speed throughput, which could mean that this is a temporary play. Memecoins tend to appeal to retail investors. But the volume of trading memes on XRPL has been modest at $78 million in the last 24 hour.
ETF speculation
XRP’s future is driven by speculation about the approval of XRP ETFs. Bloomberg’s Eric Balchunas noted that ETFs are likely to be introduced. “open the floodgates” For institutional capital. XRP is a good alternative to Solana, Ethereum and other institutional currencies because it has a large market.
XRP’s current price reflects that optimism. The market is pricing in a strong probability of acceptance given the recent developments.
Ripple’s Brad Garlinghouse has also described ETFs as “inevitable.”
XRP is already attracting the attention of firms such as Bitwise, 21Shares and others. These companies’ filings for exchange-traded funds (ETFs) could legitimize XRP further and increase institutional investor interest. SEC has set May and Junius as the deadlines to make a final decision.
XRP, the third largest crypto asset in terms of market capitalization is hard to ignore. Its ability to convert hype into long-term adoption will determine whether it is able to sustain this newfound popularity.
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