The cryptocurrency’s price hit $2.49, the highest level since January 2018, fueled by a 375% increase over the past 30 days.
XRP hits an all-time high in its market cap of $142 billion on December 1, now surpassing Tether (USDT) to become the third-largest cryptocurrency. As of the latest figures, XRP’s market cap stands at over $140 billion, with XRP’s price at $2.44, per CoinmarketCap. The price has reached its highest level since January 2018, marking a major milestone as it tops the $2.00 mark for the first time in years.
The asset is up by 32% on the day, which pushes its weekly gain to 68%. In the past 30 days, XRP has surged by 380%, quadrupling its price in a short span.
XRP’s rapid rise has been driven by a combination of factors, each contributing to its newfound bullish momentum. Over the past week, XRP’s performance has outpaced Bitcoin (BTC) and other major cryptocurrencies.
Factors Behind XRP’s Explosive Growth
Several key developments have fueled XRP’s rapid price increase. A major catalyst has been the progress in the long-running legal battle between Ripple, the company behind XRP, and the U.S. Securities and Exchange Commission (SEC). Speculation about a potential resolution to the lawsuit has led to a surge in market confidence, as many investors are hopeful that a positive outcome will unlock new opportunities for XRP.
In addition, rumors of a potential XRP-based Exchange-Traded Fund (ETF) have further added to the growing optimism.
Another significant development impacting XRP’s price is the upcoming leadership change within the SEC. SEC Chair Gary Gensler’s resignation, set for January 2025, has sparked hope that Ripple will face fewer regulatory challenges in the future.
Investors are optimistic that this change, coupled with a potential shift in the U.S. political landscape with Donald Trump’s expected return to office, will lead to a more crypto-friendly regulatory environment.
Ripple’s RLUSD Token Burn Sparks Optimism
Another factor adding to XRP’s momentum is Ripple’s decision to burn 46.67 million RLUSD tokens. This move, which reduces the RLUSD supply on the blockchain to just 100,000 tokens, has sparked further optimism among XRP investors.
It was also recently announced that Ripple could receive approval from the New York Department of Financial Services to offer the RLUSD stablecoin to the public. If approved, Ripple plans to launch RLUSD as early as December 4, 2024.
Analysts Caution About Potential Volatility
While the surge in XRP’s price has been largely positive, some analysts are warning of potential volatility. CryptoQuant analyst Maarten Regterschot recently pointed out that XRP’s open interest—essentially the number of open derivative positions—has spiked by 37%. Such sharp increases can often lead to sharp sell-offs, and some analysts have cautioned investors to manage their risk carefully.
According to data from CoinGlass, XRP’s open interest has reached $4 billion across major exchanges, highlighting the growing interest in the asset.
XRP is now less than 30% away from its all-time high of $3.40, set in January 2018. With the current price at $2.43, XRP has surged more than 68% in the last month alone. The cryptocurrency now trails only Bitcoin and Ethereum in terms of market cap, with Bitcoin holding the top spot at nearly $1.9 trillion and Ethereum at $446 billion.
