After the rise of Bitcoin, here comes that of XRP. Ripple’s cryptocurrency has experienced a meteoric rise over the past week. His progress 55% now raises it to a valuation of $2.28. But where does this excellent performance come from?
It actually finds its origin in several converging factors. In the first place, the announcement of the imminent launch of Ripple USD (RLUSD)a stablecoin developed by Ripple, scheduled for December 4. This new initiative directly positions the company as a competitor to industry giants, including USDT and USDC, marking an important step in Ripple’s expansion strategy.
The American political context also plays a determining role in this upward dynamic. The upcoming departure of Gary Gensler, chairman of the Securities and Exchange Commission (SEC), scheduled for January 20, is seen as a real breath of fresh air by the entire crypto ecosystem. Under his leadership, the SEC had in fact distinguished itself by a particularly hostile approach towards the cryptocurrency sector, with XRP as its preferred target.
A long legal standoff that is coming to an end
The dispute between Ripple and the SEC dates back to December 2020, when the American regulator filed a lawsuit against the company, accusing it of having conducted an offering of unregistered securities worth 1.3 billion dollars via its cryptocurrency XRP.
In July 2023, the American justice system reversed itself and rendered a verdict favorable to Ripple. It indicated that XRP could not be considered a “security” and therefore escaped the jurisdiction of the SEC. Despite an attempt by the American financial authority to restart hostilities a month ago, this historic decision has considerably strengthened Ripple’s position on the market.
This succession of positive events reassured the markets and triggered the surge in the value of XRP. Its capitalization has tripled in the space of a few weeks, going from 46 billion dollars in mid-November to more than 130 billion today.
Despite this remarkable performance, XRP still remains below its all-time high of $3.84 reached in January 2018with a potential margin of progress of 40%.
- XRP records spectacular rise of 55% in one week, reaching $2.28
- This progression is fueled by the upcoming launch of the RLUSD stablecoin and the announced departure of the chairman of the SEC
- Cryptocurrency becomes the third largest in terms of capitalization, exceeding $130 billion
