Ripple [XRP] experienced a substantial increase in value following Trump’s victory in the November elections. It spiked by 372% over the last month.
During the same timeframe, its market capitalization grew almost fivefold, going from $29 billion to $138 billion.
This caused it to briefly overtake Tether’s USDT to become the third-largest cryptocurrency by market cap. So, what is propelling this surge and positive market sentiment?
Factors Fueling XRP’s Growth
The initial surge occurred after the US Presidential election. During the election week, the altcoin surged by 16% following the victory of crypto-friendly Donald Trump.
In the second week of November, XRP continued its upward trend, increasing by nearly 80% and reaching $1.2 for the first time since 2021.
After a brief consolidation, a second wave of growth was initiated on November 21st, coinciding with the announcement of Gary Gensler, the chair of the US SEC, declaring his resignation by January 20, 2025.
This declaration was significant, as it was seen by the market as a positive development for the blockchain company, which has been embroiled in a legal battle with the regulator over XRP’s security classification for four years.
The regulatory uncertainty has kept XRP’s price subdued since 2020. Gensler’s anticipated departure provided some relief for the altcoin, leading to a 35% rally post-announcement.
Interestingly, XRP continued its upward trajectory in the final week of November, surging an additional 60% and crossing the $2 mark for the first time since 2018.
The recent surge also coincided with reports suggesting that the New York regulatory body was likely to approve RLUSD by December 4th.
In August, Ripple disclosed that the stablecoin was undergoing private beta testing on Ethereum and other blockchains.
As per the company, RLUSD and XRP will be utilized in the cross-border payments system to cater to global clients and enhance their overall experience. Notably,
“Once RLUSD becomes accessible, Ripple will employ both RLUSD and XRP in its cross-border payments solution to support its worldwide clientele and significantly enhance their satisfaction.”
This has sparked speculation that RLUSD could boost XRP adoption and value, especially given the $1 billion tokens held in escrow accounts. The altcoin surged further to $2.49 amidst heightened bullish market sentiment.
Future Outlook for XRP
Nevertheless, institutional investors turned bearish amid widespread bullish sentiment among the general public, according to data from Market Prohit.
Data from CryptoQuant also indicated a potential correction or short-term peak, with whale-to-exchange transactions spiking after XRP reached new cycle highs. This suggested that significant players were likely cashing out.