XRP token skyrockets 400% after Trump election, market cap exceeds $154 billion
Ripple's XRP token experienced a significant price increase during the holiday season, jumping to $2.50 and then soaring to $2.87 on Monday. This surge highlights a resurgence of investor enthusiasm for XRP, positioning it as one of the fastest-growing cryptocurrencies of the 2024 season, with an impressive 400% rise in November.
XRP's market value has now exceeded $154 billion, a significant rise from under $30 billion prior to Donald Trump’s re-election. In general, the entire cryptocurrency market has ballooned to an impressive $3.6 trillion and is poised for further rapid expansion.
As the third-largest cryptocurrency by market cap, XRP’s swift surge after Donald Trump’s re-election highlights a change in market trends. This impressive increase is largely due to significant buying pressures from international markets, particularly in South Korea, along with the liquidation of short positions on XRP futures. Over the last 24 hours, significant amounts of money tied up in bets against XRP’s price were eliminated—exceeding the total losses seen in short positions for both bitcoin and ether combined.
Edward Chin, co-founder of Parataxis Capital, shared with Bloomberg that the recent shift appears to be driven solely by retail investors, as there haven’t been any significant changes regarding XRP itself. He believes that the surge seems exaggerated, considering XRP is now among the top three digital assets. However, he notes that this doesn’t rule out the possibility of further growth, especially due to the interconnected nature of the market.
In 2020, Ripple Labs faced a lawsuit from the U.S. Securities and Exchange Commission (SEC), led at that time by Gary Gensler. But with Trump's potential re-election, Gensler revealed that he would step down on the day Trump is expected to assume office. This change could lead to a new approach in regulatory policies at the SEC, which many in the cryptocurrency industry feel has been unfriendly towards crypto businesses. Ripple's cryptocurrency stands to gain significantly from this shift in leadership, with Ripple's CEO, Brad Garlinghouse, expressing optimism that Trump will deliver on his pledge to "revitalize crypto."
