Ripple’s XRP Surges 16%, Flipping Binance’s BNB to Become One of the Top 5 Cryptocurrencies

Ripple’s native cryptocurrency, XRP, surged dramatically on November 29, 2024, becoming the 5th largest cryptocurrency by market capitalization for the first time. XRP’s market cap reached $97 billion, overtaking Binance Coin (BNB), which held a market cap of $95 billion. This remarkable leap came as the entire cryptocurrency market experienced a bullish rally, pushing the total market cap to $3.5 trillion, a new all-time high.

XRP’s 15.8% price increase in 24 hours was part of a broader market uptrend, with XRP’s price climbing to $1.70 by publication time. The token’s 30-day surge was even more impressive, gaining 226%, bringing it closer to its all-time high of $3.40, reached in January 2018.

Key Catalysts Driving XRP’s Surge

Several factors are contributing to XRP’s remarkable performance:

• Industry Optimism: The overall positive market sentiment in the crypto sector, fueled by rising prices across various assets, has played a crucial role in boosting XRP’s value. XRP’s growth was also aided by Ripple’s increasing presence in the cryptocurrency and digital payment sectors.
• Ripple’s Expanding Business: Ripple has been aggressively expanding its business, and one of the key developments is its entry into the stablecoin market. Ripple issued the RLUSD stablecoin on both its XRP Ledger and Ethereum (ETH), the latter being the largest decentralized finance (DeFi) ecosystem. This move positions Ripple as a major player in the evolving stablecoin and DeFi markets.
• Regulatory Developments: Ripple’s legal victory over the U.S. Securities and Exchange Commission (SEC) was another significant factor driving XRP’s surge. A Southern District Court of New York ruled against the SEC’s claim that XRP retail sales violated securities laws, marking a crucial victory for Ripple. The court also approved a $250 million fine related to XRP’s institutional sales. While the SEC may appeal the ruling, the decision has strengthened Ripple’s position in the crypto space.
• Potential Spot XRP ETF: Ripple has also gained significant backing from major asset managers such as Bitwise, Canary Funds, Grayscale, and WisdomTree. These firms are leading the charge to create a spot XRP Exchange-Traded Fund (ETF), which would allow more institutional investors to gain exposure to XRP. The ETF could be a major catalyst for XRP’s future growth, and Ripple’s legal success against the SEC may pave the way for its approval.
• Leadership Changes at the SEC: Ripple’s momentum is also bolstered by potential changes in U.S. regulatory leadership. With the possible appointment of Paul Atkins, a former SEC commissioner and pro-crypto advocate, as the new SEC chair, there could be a more favorable regulatory environment for Ripple and the broader crypto industry. These shifts in leadership come after current SEC chair Gary Gensler announced his resignation, which is expected to lead to a shift in regulatory approaches.

The Future of XRP

Ripple’s continued success, combined with the positive regulatory developments and growing institutional interest, has raised expectations for XRP. The token’s performance suggests it could potentially challenge Ethereum and Bitcoin in terms of market cap if the momentum continues, especially as XRP becomes increasingly integrated into the broader digital economy through Ripple’s business expansions.

However, despite the victory over the SEC, the possibility of an appeal from the SEC remains a key uncertainty. A change in leadership could also influence the SEC’s stance on XRP, with future regulations possibly affecting its price.

In conclusion, Ripple’s XRP is poised to continue benefiting from market optimism, business expansion, and regulatory support, potentially reaching new all-time highs as these factors continue to unfold. The combination of legal victories and rising interest in the cryptocurrency sector has put XRP in a prime position to remain one of the most talked-about assets in the crypto world.