XRP has re-entered the top five cryptocurrencies, reaching a market cap of $101 billion. We analyze the reasons and significance of this achievement.
XRP's Position Recovery
XRP has reclaimed its position as the fifth-largest crypto asset according to CoinGecko, with a market cap of $101 billion. This marks its highest valuation since January 2018. In the past 24 hours, its price surged 18% to $1.80, with weekly gains of 22%. Since the beginning of the year, XRP has risen by 193%, trailing only Bitcoin, Ethereum, Tether, and Solana, whose market cap is approximately $114 billion.
Key Events Driving Growth
The market has experienced a wave of optimism following Donald Trump's re-election, known for his pro-crypto stance, and the resignation of SEC Chair Gary Gensler. After hints of his stepping down, XRP broke the $1 barrier for the first time since November 2021, spiking to $1.40 after the official announcement. This could lead to a resolution or settlement of Ripple's legal battles with the SEC.
Important Factors in XRP's Ecosystem
XRP's ecosystem continues to grow with Ripple’s partnership with Archax to launch a tokenized money market fund and increasing interest from institutional players like Bitwise. Ripple is also expected to receive approval for its RLUSD stablecoin, further enhancing its utility. However, analysts caution traders as XRP's Relative Strength Index (RSI) sits at 89, indicating overbought conditions.
XRP shows strong growth potential, but traders should be aware of potential short-term volatility. Network activity is increasing, reflecting growing interest and adoption of the token.
