XRP Surges to Become Third-Largest Crypto. Why is it Up Today?

The cryptocurrency market has started the year off with a bang, seeing its market capitalization rise by more than $160 billion in the last 24-hour period, with the native token of the XRP Ledger standing out after surging more than 13% in that period.

The cryptocurrency’s rise builds upon a surge that started earlier. XRP started the year around $2.08 and has since surged significantly to now stand near $2.39. The surge allowed XRP’s total market capitalization to rise to $137.5 billion.

The rise means XRP is now the third-largest digital asset by market capitalization, above Tether’s USDT stablecoin, which has a $137.26 billion market capitalization.

XRP price chart via CCData.

The cryptocurrency market’s surge today has been largely attributed to expectations of a more crypto-friendly regulatory environment under President-elect Donald Trump. Anticipated policy shifts, including the establishment of a strategic Bitcoin reserve and the appointment of Paul Atkins as head of the SEC, have boosted investor confidence. 

Additionally, the approval of spot Bitcoin exchange-traded funds early last year has made digital assets more accessible, further contributing to the market’s upward momentum.

Trump’s pro-crypto stance has seen many speculate that XRP could soon see the launch of a spot ETF offering exposure to it. Several companies have already filed for spot XRP ETFs, including Bitwise, Canary Capital, WisdomTree, and 21Shares. Ripple’s CEO Brad Garlinghouse has suggested such a fund is “just inevitable.”

Featured image via Pexels.