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For many years, XRP was the second most valuable Cryptocurrency.
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BNB is the next rival to surpass for XRP.
The price of XRP, the digital currency issued by the Ripple company, increased by 95% over the last 7 days and displaced dogecoin (DOGE) from sixth place in the ranking of the most valuable cryptocurrencies in terms of market capitalization.
As CriptoNoticias already reported, XRP reached $1.26 this week, a price that it had not reached since November 11, 2021. This rise was driven by the massive accumulation of “whales and sharks”which are those who own between 1 million and 100 million tokens.
As explained Santimenta market analysis firm, large investors accumulated more than 453 million tokens, valued at $526.3 million.
These movements boosted the price of the digital currency, which rose more than 7% in the last 24 hours. At the time of publication of this note, the price of XRP is $1.14, 70% below the historical maximum reached in June 2018.
XRP price throughout its history. Fountain: TradingView.
While some analysts make price predictions about the future of the cryptocurrency, it is important to keep the company’s recommendation in mind. Dominican analyst Érika Espinal about this topic on his YouTube channel. “Many people make exaggerated predictions without adequate fundamental or technical analysis, which leads to unrealistic expectations,” highlights the founder of Invest-E-Capital.
Espinal gives as an example that “there are people who say that XRP can reach 10 or 12 dollars, or that Solana will reach 2,000 dollars in this bullish cycle.”
The truth is that these predictions, generally, They do not take into account the market capitalization that the assets should have so that those price predictions are met.
The market capitalization of a cryptocurrency reflects the total value of all your available units and is calculated by multiplying its current price by the circulating supply. It is a key metric to measure the relevance and size of the asset within the market.
XRP ranks sixth among the most valuable cryptocurrencieswith a market capitalization that exceeds $65 billion. Ahead is BNB, with $88 billion. So that the asset issued by Ripple manage to surpass it, its price would have to reach $1.55.
After BNB, the next rivals are solana (SOL) and USDT, the stablecoin issued by Tether, which occupy fourth and third place, respectively.
SOL currently has a market capitalization of more than $116 billion. For XRP to reach that position, its price would have to reach $2.02.
As for USDT, whose market value exceeds $127 billion, XRP would need to reach $2.24 to surpass it.
In the past, XRP was the second most valuable asset behind Bitcoin/” target=”_blank” rel=”noreferrer noopener”>bitcoin (BTC). Today, that place belongs to ether (ETH), the cryptocurrency of the ecosystem Ethereum/” target=”_blank” rel=”noreferrer noopener”>Ethereumwhich has a market capitalization of $371 billion.
For it to return to that position, XRP price would need to climb to the $6.53 line.
These calculations are useful for take dimension of the amount of money that an asset should have so that those price predictions are met.
XRP is the sixth most valuable coin on the market. Fountain: CoinMarketCap.
In this regard, Santiment details that the tendency of a cryptocurrency to grow in market capitalization “has been observed when its main shareholders increase their holdings and their confidence in the asset, while fear, uncertainty and doubt (FUD) among the small ones “Investors drive this trend even further.”
Reasons driving the rise of XRP
He Donald Trump’s victory in the United States elections generated bullish momentum in the digital asset market. Throughout his campaign, The Republican leader stated your support for cryptocurrencies and promised friendly regulation for the sector, with the aim of promoting its growth.
Likewise, Trump targeted the head of the Securities and Exchange Commission (SEC), Gary Genslerwho during his administration showed a persecutory stance towards the cryptocurrency industry. In fact, The company Ripple Labs maintains a legal dispute with the regulatory body for trading the XRP token through cryptocurrency exchanges.
Another factor to take into account is that 21Shares, a digital asset management firm, presented the application to launch an XRP-based exchange-traded fund (ETF) on the marketsimilar to bitcoin and ether. The request joins that of Canary Capital and Bitwise, who had already requested permission from the SEC for their own products.
Finally, it is worth remembering that Ripple continues to promote various educational initiatives that add value and visibility to its ecosystem, in addition to the introduction of your stablecoin RLUSD.
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