XRP Surges 27%, Overtakes USDT and Solana

Recent Price Surge

According to CoinMarketCap data on November 2, XRP’s price surged by 27.72%, climbing from $1.80 to $2.30 at the time of writing. This meteoric rise represents a staggering 365% increase from its price of $0.51 just a month ago, making XRP one of the top gainers in the market alongside tokens like Peanut (PNUT), Stellar (XLM), and Hedera (HBAR).

Market Capitalization Milestone

The price movement has significantly impacted XRP’s market capitalization, which now stands at approximately $136 billion. This marks a 26% increase that has allowed XRP to surpass both Tether (USDT), which has a market cap of $134 billion, and Solana (SOL), valued at around $108 billion.

Additionally, XRP has seen robust trading activity, with approximately $26.41 billion traded in the last 24 hours, representing a 75% increase from previous trading volumes. Earlier last week, XRP had already flipped Binance’s BNB, reaching a market cap of $97 billion compared to BNB’s $95 billion.

Factors Behind the Surge

Several factors have contributed to this impressive price movement for XRP. Ripple’s ongoing business expansion and market optimism have played a crucial role in driving demand for the cryptocurrency. Investors are hopeful that XRP may be on its way to reclaiming its all-time high of $3.80, which was achieved seven years ago.

ETF Developments Boosting Confidence

Recent developments regarding the potential for XRP exchange-traded funds (ETFs) have also contributed to the positive sentiment surrounding the cryptocurrency. On November 25, WisdomTree, a U.S. Bitcoin ETF issuer, proposed an XRP ETF to the state of Delaware. Although this proposal has not yet been officially submitted to the Securities and Exchange Commission (SEC), the market response has been enthusiastic.

Additionally, 21Shares submitted a proposal for a crypto-related product called the 21Shares Core XRP Trust to the SEC on November 1. Similarly, Bitwise filed a comparable application for their product in early October.

Regulatory Landscape and Future Outlook

While the ongoing dispute between Ripple and the SEC remains unresolved, market optimism persists regarding potential regulatory changes. Investors are hopeful that a future Trump administration may introduce more crypto-friendly regulations. With the current SEC chair, Gary Gensler, expected to step down before Trump’s inauguration, the appointment of a new chairman could further influence the regulatory environment for cryptocurrencies.

Conclusion

In summary, XRP’s recent surge of 27% has positioned it as the third largest cryptocurrency by market capitalization, driven by strong trading activity and positive developments regarding potential ETFs. While challenges remain due to ongoing regulatory issues, the market’s optimism about the future and Ripple’s business expansion suggest that XRP may continue to gain traction in the coming months. Investors should remain attentive to market trends and regulatory developments as they navigate this dynamic landscape.