December started in the best way for XRP. The Cryptocurrency issued by the company Ripple Labs is trading at levels not seen since January 2018.
As CriptoNoticias has reported, the good performance that XRP is having allowed it to position itself as the third most valuable asset, above Ethereum-killer-programs-aplicaciones-memecoins/” target=”_blank” rel=”noreferrer noopener”>sunny (SUN) and USDTthe stablecoin issued by Tether.
Currently, its market capitalization exceeds $134 billion.
XRP is the third cryptocurrency with the largest market capitalization to USDT. Source: CoinMarketCap.
In the last 7 days, the price of XRP went from $1.49 to $2.50, a level that has not been reached for 6 years. At the time of publication of this note, the price is $2.40.
XRP price throughout its history. Fountain: TradingView.
To understand what is driving this rise, it is important to review the events that occurred in the first days of November, which favored cryptocurrencies but, especially, XRP.
Next, we will review the 5 keys that explain this good performance.
1-Trump of Donald Trump
The victory of the republican leader in the United States presidential elections sparked bullish sentiment in the cryptocurrency market.
As CriptoNoticias already reported, Trump showed a Bitcoin-conferencia-2024-criptomonedas-nashville/” target=”_blank” rel=”noreferrer noopener”>stance in favor of digital assets and promised that during his second term, he will work to promote a clear and friendly regulatory framework to promote the growth of the sector in that country.
Brad Garlinghouse, CEO of Ripple Labs, stated that he was not surprised by the reaction that the cryptocurrency market had to Trump’s victory. He explained:
“The cryptocurrency industry has embraced Trump. Trump has embraced the cryptocurrency industry. “I think he’s very genuine, and I think he sees the opportunity, he sees the innovation, he sees the entrepreneurial spirit – I’m very excited about what the future holds.”
Brad Garlinghouse, CEO of Ripple Labs.
During the last days of November, Fox News Business reported that there is the possibility of a meeting between Trump and Garlinghouse to start working on the first measures to promote the development of cryptocurrency projects in the United States. The meeting was not confirmed by any of the parties but sparked the enthusiasm of XRP investors.
2-Resolution of legal dispute between Ripple and the SEC
In his campaign, the president-elect also promised to oust Gary Gensler from the chairmanship of the United States Securities and Exchange Commission (SEC). Although Trump will not have the power to remove himthe head of the regulatory body He assured that he will leave office next January 20, 2025. If he keeps his word, he could mark a before and after for the industry.
Gensler may possibly be remembered as a kind of villain for the main players in the sector. The thing is that during its mandate, the SEC adopted a persecutory attitude against the sector and presented Binance-revela-12-criptomonedas-riesgo/” target=”_blank” rel=”noreferrer noopener”>lawsuits against exchanges such as Binance, Kraken and Coinbase, for marketing a dozen digital assets that were considered by the SEC as unregistered securities (securities), which prohibited their sales.
Gensler’s departure from the SEC appears imminent. Source: Pionline.
The organism finally removed that rating but the lawsuits implied significant economic costs for those firms.
In the particular case of Ripple, we must remember that it is still faces a lawsuit against the SEC for marketing XRP through exchanges. Although the United States Justice determined that the asset can only be considered security in some caseslike institutional sales, the regulatory body appealed the decision, and extended the judicial conflict.
This story could end with a leadership change in the SEC. At least that’s what former Chairman of the Commodity Futures Trading Commission (CFTC) Chris Giancarlo said, who stated I would bet that, With the departure of Gensler, the organization will dismiss the lawsuit against Ripple. If this comes to fruition, it could generate significant bullish momentum in the price of XRP.
3- Companies request Ripple currency ETF
The companies Canary Capital, Bitwise, WisdomTree, and 21Shares filed applications to issue their respective XRP-based exchange-traded funds (ETFs). If the aforementioned lawsuit is dismissed, There is a high probability that these investment products will be approved and launched on the market.
21Shares is one of the 4 companies that filed to issue an XRP ETF. Source: SEC.
In that sense, it should be noted that, if the next administration of the SEC works on par with the actors in the sector, there will be a clear regulatory framework regarding the qualification of digital assets. That is, which cryptocurrencies are considered securities and which are not.
The introduction of an XRP-based ETF could have a direct impact on your price.
As explained in Criptopedia, educational section of CriptoNoticias, for the operation that have these financial instruments, the companies that manage them have to keep the underlying asset, in this case XRP, in their treasuries to support their actions.
If successful, these firms must acquire the asset, which could drive its price upwards.
4- The approval of RLUSD in the US is approaching.
The New York Department of Financial Services (NYDFS) is close to approving RLUSDthe new stablecoin from Ripple Labs.
If this happens, the firm will position itself as an important competitor in that country’s regulated cryptocurrency market. Sources close to the matter told FOX Business that approval could come as soon as this week.
In this way, the company will offer its users an asset that is not exposed to the volatility of the cryptocurrency market. Furthermore, another issue to highlight is that this stablecoin will work both in the Ethereum network like in XRP Ledger.
It is also important to note that if RLUSD drives higher trading volume on the XRP Ledger, demand for XRP for commission payments will increasewhich could have a positive effect on its price.
5-The market is experiencing an altseason
The term altseason refers to the combination of the word altcoins (all cryptocurrencies without counting bitcoin) and season (season).
An altseason usually occurs after bitcoin shoots higher. That’s when Optimism spreads to the rest of the market and awakens investors’ interest in risk.
As explained on the website of Altcoin-season-index/” target=”_blank” rel=”noreferrer noopener”>Blockchain Centerthere is an altseason when 75% of the 50 largest capitalization cryptocurrencies outperform BTC in 90 days.
The same site has an “altseason index”, which indicates whether the market is going through an altcoin season. As seen in the chart below, 76% of the digital currencies with the largest market capitalization outperformed bitcoin in the last 90 days.
In the last 30 days, XRP is up 300% and was positioned as the best performing cryptocurrency in the top 10 by market capitalization.
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