XRP has hit significant milestones recently, with its price soaring to levels last reached in early January 2018. The cryptoasset has gained an impressive 91% in the past week and 425% over the last month, cementing its place as one of the top-performing cryptoassets in the current market rally. XRP’s upward trajectory, bolstered by growing on-chain activity, Ripple strategic partnerships and optimism around XRP ETFs, has sparked speculation that the asset could soon challenge the $10 mark in the next cycle.
XRP becomes 3rd largest cryptocurrency by market cap ranking
In a stunning development, XRP has risen to become the 3rd-largest cryptoassets by market capitalization, following bitcoin (BTC) and Ethereum (ETH). XRP’s market cap sits around $154 billion at the time of writing, roughly $20 billion higher than TetherUSD’s (USDT) market cap. This feat was achieved after the XRP Ledger (XRPL) native token skyrocketed to an astounding $2.77 market value on Monday for the first time in nearly seven years.
The Ripple-backed coin is consolidating at $2.63 at the time of writing, reflecting a 15% price gain in the last 24 hours. Notably, the estimated 7-year high in XRP price comes amid increasing whale accumulation and XRPL adoption.
Read Also: XRP Coin soars as Ripple secures major victory in U.S SEC lawsuit. What investors should know.
XRP Ledger sees increased adoption
The XRPL has shown remarkable growth, driven by a surge in user activity. Data from XRPscan reveals that the number of active wallets on the network climbed from 15,592 on November 1 to 47,044 by November 16. Additionally, the average daily active wallets doubled in November 2024, rising from approximately 12,000 to 25,000. On Monday, the leading analysis platform Santiment revealed that wallets with 1 million to 10 million XRP have accumulated roughly 679.1 million XRP coins in just three weeks. Santiment data further showed that whales bought an additional 160 million XRP over the weekend, valued at around $380 million at the time of the update.
This increase in activity has been complemented by a spike in new wallet activations, indicating rising interest among users and developers in the XRP and crypto ecosystem. As of 2 December 2024, total non-empty XRP wallets reached 5.5 million for the first time since 2016, Santiment data showed. Notably, last Sunday alone, 22,357 new XRP wallets were added to the Ledger, signifying increasing adoption and bullish sentiments.
Moreover, analysts attribute this momentum to Ripple’s ongoing efforts to enhance XRP’s utility and expand its applications in the financial sector.
Ripple’s strategic partnerships and XRP ETF optimism
Ripple’s partnerships have played a crucial role in boosting XRP’s performance. A recent collaboration with Archax aims to launch a tokenized money market fund on the XRP Ledger, further expanding the network’s capabilities. This partnership shows Ripple’s commitment to leveraging blockchain technology for more efficient financial solutions.
Moreover, crypto index fund manager Bitwise announced in November the rebranding of its European XRP ETP (exchange-traded product), which would enable investors in the region to access XRP through a physically backed ETP. Such developments are enhancing XRP’s appeal among institutional investors, fostering increased adoption and liquidity.
Globally, Ripple has made significant progress in advancing blockchain-based financial solutions. Projects like the Palau Stablecoin and collaborations with Asian financial institutions highlight XRP’s growing role in cross-border payments and central bank digital currencies (CBDCs).
It bears mentioning that several global asset managers have filed applications with the U.S. Securities and Exchange Commission (SEC) to onboard their respective XRP exchange-traded funds (ETFs). While none has been approved at the time of writing, odds are that they will be approved in the incoming Donald Trump administration. The incoming administration for both the U.S. government and SEC leadership promises a more friendly regulatory environment for the crypto industry.
Overall, Ripple’s legal victory against the U.S. Securities and Exchange Commission (SEC) earlier this year continues to underpin investor confidence in XRP. The court’s ruling that XRP is not a security when sold to retail investors has opened doors for increased adoption and reduced regulatory uncertainty.
Read also: What is fueling XRP’s 100% price increase in the past 14 days?
A new all-time high is in sight for XRP
Bullish chart patterns have also driven XRP’s recent rally to $2.77. Particularly, its breakout from a bull flag formation last month suggests further upside potential, with chart analysis identifying $1.95 to $2.05 as the next critical support range. Should this support level hold then a new all-time high may be in sight for the asset.
One pseudonymous crypto analyst, Mikybull, noted that XRP is showing similarities to its 2017 rally, which led to the cryptoasset hitting an all-time high of $3.4 in early 2018, according to Coingecko data. According to him, a surge to $2 followed by a correction could pave the way for even greater gains, possibly reaching $10 in the next cycle. He wrote: “XRP 2017 kind of rally vibes. Hit $2, experience a pullback, and then continue its vertical hated rallies to a new cycle top of probably $10.”
Translating to a potential 280% rally from current prices, XRP’s market cap would have to reach a whopping $571 billion to hit a $10 price mark, citing its circulating supply of approximately 57.1 billion at the time of writing.
Read Also: Ripple and XRP Explained
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been studying the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
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