Ripple (XRP) Surges to New Heights, Fueled by Regulatory Optimism
Ripple (XRP), the third-largest cryptocurrency, has broken new ground, exceeding $200 billion in market capitalization for the first time. This milestone coincides with its price reaching $3.50, nearing its all-time high of $3.84 recorded eight years ago.
XRP’s recent performance is attributed to a confluence of factors, including the election of Trump and anticipated regulatory shifts.
Notably, Ripple faced legal challenges from the SEC during the Biden administration in 2020, which weighed on its growth while other projects flourished. Some investors even considered legal action against the Commission, alleging misconduct, negligence, and abuse.
XRP’s Ascent and the “Genius Act”
XRP has significantly benefited from the recent US elections. Since November 5, 2024, the date of the election results, the cryptocurrency has surged by approximately 600%.
After a price correction, XRP has resumed its upward trajectory this July, currently trading at $3.50.
The surge is linked to the “Genius Act,” a US bill aimed at providing regulatory clarity for the cryptocurrency market, particularly for stablecoins.
Brad Garlinghouse, CEO of Ripple, commented on the bill’s approval, stating:
“The last major financial regulation bill was passed 15 years ago in response to the 2008 financial crisis. Tomorrow, the signing of the GENIUS Act cements the US’s future as a leader in truly innovative financial technology – stablecoins. This moment is a historic one, and I’m personally looking forward to all that will come as a result of this transformative legislation.”
Given XRP’s focus on solutions for traditional financial institutions, it is poised to be a major beneficiary of the Genius Act.
Furthermore, the market anticipates SEC approval of XRP ETFs this year, which could attract a new wave of investors.
XRP Drives “Altcoin Season”
XRP’s rise is also influencing the “altcoin season index” on CoinMarketCap. This tool gauges market interest in Bitcoin versus other cryptocurrencies. As the total cryptocurrency market capitalization approaches $1.5 trillion, the index has reached its highest level in the past 90 days.
Ethereum (ETH), the second-largest cryptocurrency, is also contributing to this trend.
While XRP has increased by 22.1% in the last 7 days, ETH has gained 19.2% during the same period. Substantial investments from companies and record inflows into ETFs are driving Ethereum’s price surge.
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