Ripple (XRP) Breaks Into Top 3 Cryptos After Overtaking Tether (USDT) and Solana (SOL)
2024-12-02

XRP has climbed to the third spot among cryptocurrencies by market cap, overtaking the world’s largest stablecoin Tether (USDT) as well as the “Ethereum Killer” Solana (SOL). Data from CoinMarketCap reveals that XRP’s capitalization has surged past $1350 billion, leaving only Bitcoin (BTC) and Ethereum (ETH) ahead in the rankings.
Over the past seven days, XRP has increased by almost 70%, pushing its price near $2.5, a level not seen almost seven years ago.What’s Powering XRP’s Rally?
The XRP rally can be traced to a series of political and regulatory developments alongside renewed market speculation. Donald Trump’s election as the 47th President of the United States has reignited enthusiasm across the cryptocurrency market, with Bitcoin approaching the $100,000 mark and Ethereum posting notable gains.
XRP, initially showing moderate activity in November, has gained momentum following reports that Ripple’s RLUSD stablecoin is ontrackfor approval by the New York Department of Financial Services (NYDFS) and may launch as early as December 4.
Furthermore, there’s also growing speculation about a potentialendto Ripple’s legal battle with the Securities and Exchange Commission (SEC), which is fueling bullish sentiment. Investor confidence has been further strengthened by SEC Chair Gary Gensler’s resignation and the expectation that a Trump-led administration will adopt a more favorable stance toward the industry.
Other developments include firms like Bitwise and Canary Capital, which are actively pursuing the SEC’s approval to introduce ETFs focused on XRP.Drawdown Ahead?
According to CryptoQuant analyst Maarten Regterschot, XRP is currently experiencing a leverage-driven price surge, with Open Interest (OI) climbing by 37%. This uptick in leverage suggests that traders are aggressively positioning for price movements, which could amplify volatility in the short term.
The analyst cautioned that a similar pattern in the past led to a 17% price decline, emphasizing the importance of managing risk amid such conditions.
Currently, XRP’s open interest climbed to $4.23 billion across major trading platforms, as per data compiled by CoinGlass.