The XRP became the fourth-largest cryptocurrency as it crossed the $100 billion mark. The price of XRP surged after the US presidential elections. The cryptocurrency XRP which is closely related to RIpple labs saw a sudden price increase. This is due to the rumors that the SEC will take down its case against Ripple. Bitcoin remains in the top position in the market capitalization. Here in this article, we can look into the details that caused a surge in the market capitalization of the cryptocurrency XRP. The cryptocurrency XRP by Ripple Labs has surpassed Solana to become the fourth largest cryptocurrency.
The price value of XRP increased by 50 percent last week. XRP also saw a 21 % increase last day. XRP surpassed Solano which was the fourth largest crypto coin. Bitcoin is the most valuable cryptocurrency has a market capital of around $1.89 trillion and etherum has a market capital of $436 billion
Also read :Bitcoin Crosses $89,000: What’s Next for the Leading Cryptocurrency?
Reasons for the XRP price hike
Trump’s election victory is one of the contributing factors to the price increase. The market capital of XRP increased to $131 billion from $30 billion. The price increase was also a result of the news that the New York Department of Financial Services may legalize the Ripple RLUSD stablecoin. The news stated that the New York Department of Financial Services may approve the new RLUSD coin on December 4, 2024.
Background of the case between SEC and Ripple Labs
XRP payment Protocol was developed by Ripple and uses XRP as the tool of the Ripple payments platform. The Ripple Labs was sued by the Securities and Exchange Commission. SEC sued Ripple Labs in the year 2020. The SEC sued Ripple Labs as the SEC found out that Ripple Labs used tokens without registering them as a security.
The judge stated that the accused company Ripple Labs did not do any violations. He also stated that Ripple Labs did not sell the token on public exchanges. This resulted in the victory of Ripple Labs over the Securities and Exchange Commission. Last month the Securities and Exchange Commission went for an appeal in US court of appeal. They went for an appeal hoping for a second circuit.
Securities and Exchange chairperson Grey Gensler announced that he is stepping down from the position of chairperson at the beginning of next year. This announcement was followed by Donald Trump’s win in the US presidential elections. These two things were the reasons for the speculations around the Ripple Case.
Chris Giancarlo who was former Commodity Futures Trading Commission chairman stated that the Securities and Exchange Commission should halt their case with Ripple Labs. Chris Giancarlo may become a Crypto Czar in the Donald Trump administration in the US.
Post Election
There was an increase in the value of cryptocurrency after the US presidential elections. This may be due to the speculation that the Trump Administration will be crypto-friendly. During the presidential election campaigns, Trump had promised that he would make the US the crypto capital of the planet. Trump’s crypto policies will be different compared to Biden’s policies. This was one of the reasons for the spike in the crypto value.
Other factors fueled the surge in XRP value.
The XRP by Ripple has increased its value by crossing the 2-dollar mark recently. It also became the fourth-largest coin by market capitalization. This happened first time in seven years. The XRP was at its highest price $2.5 after January 2018. The value of the XRP has increased by 20 percent with a weekly gain of about 50 percent. Last month the value of the crypto XRP increased 345%. The surge in the value of crypto XRP was quite impressive. With the ongoing sudden decrease in the value of XRP, it may surpass the market capital of the cryptocurrency Solana.
Another major factor that contributed to the increase in the value of XRP is South Korean traders. South Korea’s largest exchange Upbit had a trading volume of XRP $3.8 billion. This figure is greater than the trade volume of bitcoin by 11 times. Scopescan, a blockchain analytics firm reported this change.
Bithumb is another South Korean trading platform where the XRP trades become high. In the platform Bithumb the the XRp trades was $1.2 billion. This figure accounts for 32 percent of the total trading volume in the platform. Other crypto trading platforms like Binance and OKX also showed a rapid increase in XRP trading.
However, the largest percentage of trading occurred in Bitcoin and Ethereum only. The South Korean XRP trading is another factor for the surge in the market capital of the XRP. The long-time investors of XRP coin are enjoying profits.
The Ripple Labs strategic initiatives also is a triggering factor for the growth in the value of XRP. The Ripple Lab has advocated for pro-crypto legalization. Ripple Labs wants to continue its innovation in cross border payment sector. Ripple Labs has taken honest initiatives to collaborate with other financial institutions. This has caused an increase in the value of XRP cryptocurrency.
The ripple labs is also making efforts to decentralize financial platforms. Ripple Labs provides services through decentralized financial platforms which also fosters confidence among crypto traders. The vision of the Ripple labs also triggered the surge in the market capitalization of the value of XRP.
Also read : Ripple XRP Price Milestone: Can It Hit $8 by 2025?
Conclusion
The increase in the market capitalization of XRP by Ripple Labs mostly happened in November. The market capitalization has surpassed Solana and has crossed over 100 billion dollars. XRP’s market capitalization is now only behind Bitcoin and Ethereum. We have mentioned the factors that led to the increase in the market capitalization of the XRP by Ripple Labs. The legal win of Ripple Labs and the recent US presidential elections are the main factors that contributed to the surge in XRP.
