On Monday, XRP (XRP-USD), the native crypto token of XRP Ledger, emerged as the top performer in the digital asset market. It rallied as much as 21% during the day, pushing its market cap to $142 billion. This significant increase has catapulted XRP into third place among cryptocurrencies by market capitalization, surpassing stablecoin Tether (USDT-USD) with a market cap of $134.5 billion.

Market Cap Rankings

  • 1. Bitcoin (BTC-USD): Remains the largest cryptocurrency by market cap.
  • 2. Ethereum (ETH-USD): Holds the second position, but its price has been declining in recent weeks.
  • 3. XRP (XRP-USD): Surges to become the third-largest cryptocurrency by market cap.

Recent Price Movement

The price of XRP has skyrocketed over the past month, increasing almost 350% as traders anticipate a more favorable regulatory environment under President-elect Donald Trump’s administration. This surge can be attributed to several factors:

  • Trump’s Regime Change: The president-elect’s plans to loosen regulations on crypto could have a positive impact on XRP and other digital assets.
  • Ripple’s Court Case: A court case involving Ripple, the payment platform that uses XRP for transactions between financial institutions and businesses, has contributed to XRP’s increased value.

XRP: The Story Behind the Token

XRP is an essential component of the XRP Ledger ecosystem. It facilitates fast and cheap transactions between financial institutions, businesses, and organizations. Ripple, a payment platform that uses XRP, is on the cusp of receiving approval from New York’s crypto regulator for its stablecoin pegged to the US dollar (RLUSD). This development would provide users with an alternative to XRP, which has historically been volatile.

Regulatory Environment

The regulatory landscape for cryptocurrencies in the United States is expected to undergo significant changes. Trump’s administration plans to install a new SEC boss to replace Gary Gensler, who has been critical of crypto. Additionally, the president-elect has expressed interest in implementing a bitcoin stockpile in the US.

Market Trends and Analysis

Bitcoin’s price dipped by 2% on Monday, falling just below $95,000. The world’s largest cryptocurrency has lost momentum in recent weeks, with some speculating that it may reach the elusive $100,000 mark. For the year-to-date, bitcoin has risen around 114%.

Tom Kiddle, co-founder of Palisade, offered insight into the current market trends:

"This ongoing bull run underscores a critical inflection point for cryptocurrencies. For BTC, regulatory clarity and macroeconomic factors are driving speculative