XRP (XRP) Rallies 65% to Third Place in Market Cap – What's Driving the Surge?

XRP continued its rally over the weekend with a gain of around 65 percent and moved up to third place in the list of the most capitalized cryptocurrencies.

Cryptocurrency XRP enjoyed a remarkable surge over the weekend, registering a gain of around 65 percent and ascending to the third position among the most capitalized cryptocurrencies.

What Drove Ripple’s (XRP) Stellar Advance?

As of Monday morning, Ripple (XRP) was trading at about $2.40, a level last seen in January 2018. Since Friday, XRP has experienced a substantial increase of 65 percent, leading to a shake-up in the rankings of the most valuable cryptocurrencies.

With a market capitalization of around $140 billion, the Ripple altcoin has recently surpassed Binance Coin (BNB), Solana (SOL) and the stablecoin Tether (USDT), placing it only behind Bitcoin and Ethereum in terms of value among the top cryptocurrencies.

But what factors have contributed to this surge in XRP?

– On Friday, Fox Business reported that the Ripple stablecoin RLUSD, which had been in the works since April, had finally received approval from the New York Financial Authority. According to the report, RLUSD could be available on the market as early as Wednesday (December 4th). While Fox cited sources “familiar with the matter,” an official confirmation is still pending.

In October, Ripple announced several high-profile partnerships, including Bitstamp and MoonPay, for the launch of RLUSD, which the company views as a crucial addition to the XRP ecosystem.

– In the crypto industry, the stablecoin sector is currently valued at almost $180 billion, with Tether (USDT) and USDC leading the way.

Ripple anticipates a surge in demand for stablecoins and aims to close the gap on the market leaders with its RLUSD offering. Banks and fintech companies are also expected to utilize RLUSD, given Ripple’s longstanding efforts to forge relationships with the traditional financial sector.

– Applications for XRP ETFs are also being considered, which could further boost XRP’s presence in the financial markets. Ripple's cryptocurrency is poised to become the third coin, following Bitcoin and Ethereum, to be tradable as an ETF in the USA, promising an influx of capital for XRP.

Conclusion: XRP Stages a Swift Comeback – Can Ripple Sustain the Momentum?

The comeback of XRP has been nothing short of remarkable. When the SEC filed a lawsuit against Ripple in December 2020, the price dropped sharply to below $0.30, leading some observers to speculate about a sustained loss of significance.

However, XRP has now made a stunning return to the top league of global cryptocurrencies, bolstered by an environment where the ecosystem is being rounded off with the stablecoin RLUSD, preparing it for a wide range of applications.

Recently, the launch of tokenized money market funds on the XRP blockchain served as an example of Ripple's future plans. It appears that the tide has turned for XRP for good, allowing Ripple to shift its focus back to its core competencies instead of being bogged down by the legal battle with the SEC.

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(Featured image by Dmytro Demidko via Unsplash)

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