- XRP hits $3: The token hit a seven-year high, outperforming broader crypto markets.
- Key factors: ETF spot speculation, legal developments and whale accumulation.
- Future Outlook: A 15% rise could set a new inflation-adjusted all-time high above $4.24.
XRP surged to $3 for the first time since 2018, driven by market optimism and large-scale accumulation by major holders.
XRP, the native token of the XRP Ledger, hit $3 on Wednesday, marking a seven-year high. The token’s price rose 11% in 24 hours, outperforming Bitcoin’s 3.6% gain. At $2.95, the token shows an increase of 488% since Donald Trump’s election victory.
With a market capitalization of $170 billion, XRP has reclaimed its place as the third-largest cryptocurrency, overtaking Tether’s USDT stablecoin. This market capitalization is now greater than that of BlackRock, the world’s largest asset management company.
The growing anticipation of a spot XRP ETF is a big factor. Ripple President Monica Long recently expressed optimism about its approval, citing favorable regulatory changes likely under the new US administration. This sparked speculation and excitement among investors, further driving demand for the tokens.
The ongoing legal battle between Ripple and the SEC has also played a pivotal role in keeping XRP in the spotlight. As the case over token sales drags on, many market participants are speculating about a resolution that could favor Ripple, potentially paving the way for clearer regulations and improved adoption.
Additionally, Ripple’s innovative efforts, such as the launch of its stablecoin RLUSD, have strengthened its position within the financial ecosystem. These new initiatives underscore Ripple’s commitment to expanding its offerings and solidifying its presence in the evolving digital asset space.
Market analysts suggest the rally has broken a consolidation pattern seen since early December. An additional 15% price increase would propel XRP to new all-time highs above $3.4. Accounting for inflation, the token needs to surpass $4.24 to reach a true all-time high, according to Alex Thorn of Galaxy Research.
XRP Whale Accumulation to Record Highs
Large investors are fueling the rally with significant accumulation of tokens. Analytics firm Santiment reported that addresses holding between 1 and 10 million tokens have added 1.4 billion coins worth $3.8 billion since mid-November.
This steady accumulation of whales indicates strong market confidence, especially as prices have consolidated following early December highs.
XRP’s rally reflects a growing appetite for digital assets, supported by Bitcoin’s rise to $100,000. These gains underscore market optimism about regulatory clarity and a more robust crypto infrastructure.
Although XRP has regained its place among the top three cryptocurrencies, its future growth depends on regulatory outcomes and wider adoption. For traders and long-term holders, this milestone could mean the start of a new era for the altcoin in the evolving crypto landscape.
