As of December 2, 2024, Ripple (XRP) has officially claimed the position of the third-largest cryptocurrency by market capitalization, marking a significant milestone in its recent extraordinary rally. The token’s market cap surged to $137.4 billion, overtaking Tether’s (USDT) $134.3 billion, with XRP trading at approximately $2.46—a staggering 77% increase in the past week and an astounding 375% rise in the past month.
The rally reached new heights on Monday, as Ripple XRP jumped another 30%. Over the weekend, it had already surpassed Solana (SOL) in market cap, further solidifying its position. Analysts attribute this remarkable performance to several key catalysts.
One major factor is speculation surrounding Ripple’s RLUSD stablecoin, which may soon receive approval from the New York Department of Financial Services (NYDFS). Insider reports suggest NYDFS could greenlight RLUSD within days, with Ripple targeting a December 4 launch. This would grant Ripple access to New York’s highly regulated digital finance market, bolstering its presence in the stablecoin sector. RLUSD aims to compete with leading stablecoins like Tether’s USDT and Circle’s USDC while enhancing Ripple Net’s capabilities for faster, cost-effective cross-border payments.
XRP’s resurgence also ties to broader market optimism, particularly after Republican victories in the U.S. elections in November. This political shift has spurred confidence in U.S.-linked cryptocurrencies like XRP. Investors are also eyeing the potential approval of an XRP exchange-traded fund (ETF), which would significantly expand accessibility for traditional investors.
Adding to the momentum, SEC Chair Gary Gensler’s recent announcement of his January resignation has sparked hopes for a more favorable regulatory landscape. This could influence Ripple’s ongoing legal battle with the SEC, which has accused Ripple Labs of selling XRP as an unregistered security since December 2020.
Despite the regulatory challenges, Ripple’s strategic moves and the broader market dynamics have propelled XRP to its current heights, signaling a new era of growth and adoption for the cryptocurrency.