On December 1, XRP reached a record market cap of $142 billion, surpassing Tether (USDT) to become the third-largest cryptocurrency. XRP's price hit $2.44, marking its highest level since January 2018.
Factors Behind XRP's Explosive Growth
The main drivers for XRP's growth include progress in the legal battle between Ripple and the SEC, rumors of a potential XRP-based ETF, and upcoming leadership change in the SEC.
Ripple's RLUSD Token Burn
Ripple's decision to burn 46.67 million RLUSD tokens, reducing the number to 100,000, sparked optimism among investors. Ripple is also expected to receive approval to offer the RLUSD stablecoin from the New York Department of Financial Services.
Analysts Caution About Potential Volatility
Alongside XRP's 32% price increase in a day, analysts warn of potential volatility. CryptoQuant's analyst Maarten Regterschot noted a 37% spike in open interest, which could lead to price swings.
XRP remains a focal point in the crypto market, holding third place in market cap after Bitcoin and Ethereum. The new SEC leadership and other factors may influence XRP's future, but investors should remain aware of potential volatility.
