Ripple’s XRP Reaches $2, Flipping USDT and SOL in Market Cap
2024-12-02

The crypto market is abuzz after witnessing a seismic shift. XRP, the powering token for the Ripple ecosystem, surged past the $2 mark, cementing its position as the third-largest cryptocurrency by market capitalization.
With its market cap now exceeding $135.37 billion, XRP overtook both USDT stablecoin ($134.17 billion) and Solana ($108.01 billion). This has ignited fresh debates about its potential to challenge Ethereum’s dominance.
XRP Ascends to Crypto Top 3, Beats USDT, SOL
XRP traded at $2.37 at the time of writing, a staggering 25.57% rise since the Monday session opened.
Crypto enthusiasts speculate that its upward trajectory could eventually see it rival Ethereum (ETH), currently valued at $441.46 billion. Crypto enthusiast Amelie highlighted a recent meeting between Cardano founder Charles Hoskinson and Ripple CEO Brad Garlinghouse.
Rumors have also surfaced about Garlinghouse being a candidate for Donald Trump’s potential crypto czar. Such a move could further elevate XRP’s status, especially with Trump’s reported pro-crypto stance.
Meanwhile, XRP’s resurgence coincides with renewed focus on Ripple’s high-profile legal battle with the US SEC. The case, which began in December 2020, has seen XRP weather significant market fluctuations and regulatory uncertainty.
Ripple vs. SEC Case Amid Potential Shifts in US Crypto Regulation
XRP has regained its pre-lawsuit valuation, reminiscent of the time before the SEC deemed Bitcoin and Ethereum non-securities in 2018 before the Hinman speech in June that year under the “sufficiently decentralized” argument. Following the speech, Ethereum’s market cap overtook XRP’s in November 2018.
The so-called “Hinman emails,” obtained through discovery in the Ripple case, showed some officials inside the SEC at odds with the speech’s content. Specifically, they were worried about its implications for the regulatory status of other cryptocurrencies, which remains unclear. Despite these revelations, XRP’s regulatory status remains unresolved, with legal experts predicting the case could extend into July 2025.
Attorney John Deaton, a vocal advocate for Ripple and XRP investors, has vowed to continue supporting the case, even after his failed Senate bid. His persistence reflects the case’s importance to the broader crypto industry.
Meanwhile, the SEC’s aggressive stance on crypto under Chair Gary Gensler has drawn widespread criticism, with calls for regulatory clarity growing louder. Gensler’s anticipated resignation could mark a turning point. Observers suggest that his departure might pave the way for a more crypto-friendly regulatory environment, particularly in the advent of a pro-crypto administration.
The general sentiment is that Trump’s incumbent administration could usher in policies favorable to cryptocurrencies. Under such an administration, Ripple’s legal standing might improve, potentially ending years of regulatory uncertainty.
Nevertheless, despite the recent gains, analysts warn of potential profit-taking among XRP whales amid significant spikes in whale-to-exchange transactions.
“Historically, significant spikes in whale-to-exchange transactions (marked by red circles) align closely with XRP price peaks. This suggests that whales tend to move large amounts of XRP to exchanges to sell near local or cycle tops. The latest spike in whale-to-exchange activity coincides with XRP reaching a local price of around $2.3. This could indicate whales preparing for potential profit-taking or increased market activity,” a CryptoQuant analyst wrote.