XRP has shown impressive growth, reaching a record market cap of $142 billion as of December 1, surpassing Tether to become the third-largest cryptocurrency.
Factors Behind XRP's Explosive Growth
Several key developments have fueled XRP's rapid price increase. A major catalyst has been progress in the long-running legal battle between Ripple and the SEC. Speculation about a potential resolution to the lawsuit has boosted market confidence. Rumors of a potential XRP-based ETF have further added to the optimism. Additionally, the upcoming leadership change within the SEC, with Chair Gary Gensler's said departure in January 2025, has sparked hopes for a less challenging regulatory environment.
Ripple's RLUSD Token Burn Sparks Optimism
A factor boosting XRP's momentum is Ripple's decision to burn 46.67 million RLUSD tokens, reducing the blockchain's RLUSD supply to 100,000 tokens. There's news that Ripple may receive approval from the New York Department of Financial Services to release the RLUSD stablecoin as early as December 2024.
Analysts Caution About Potential Volatility
Not all analysts are optimistic. Some warn of potential volatility. CryptoQuant analyst Maarten Regterschot noted that XRP's open interest has spiked by 37%, and such increases can lead to sharp sell-offs.
XRP maintains its momentum and stands among the top leaders in the crypto market. However, analysts warn investors to stay cautious and manage their risks carefully.
