XRP, the native token of the XRP Ledger network closely associated with Ripple, experienced a significant surge, reaching a six-year high on Wednesday. This spike occurred in tandem with Bitcoin’s (BTC) rally, which saw the price climb to $100,000. Traders were invigorated by the release of the latest U.S. CPI inflation data, which exceeded expectations.
During early U.S. trading, XRP briefly surpassed $3 for the first time since January 2018, before paring back some gains. As of now, XRP is trading at approximately $2.95, reflecting an impressive 11% increase over the past 24 hours. This performance outstrips Bitcoin’s 3.6% gain and the broader CoinDesk 20 Index’s increase of 6.7% during the same timeframe.
Since the election victory of Donald Trump, XRP has been one of the top-performing tokens, boasting an astonishing 488% gain. It has now positioned itself as the third-largest cryptocurrency by market capitalization, overtaking Tether’s USDT stablecoin, with a current valuation of approximately $170 billion—larger than asset management giant BlackRock (BLK).
The recent surge can be attributed to heightened expectations surrounding crypto-friendly policies and an impending overhaul of digital asset regulations within the United States. The ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple over the sales of XRP tokens has also kept market participants on edge.
“This surge is driven by a growing number of partnerships, the launch of Ripple’s stablecoin RLUSD, and speculation about a potential spot XRP ETF,” stated Diego Cardenas, an OTC trader at the digital asset platform Abra, in a note shared with CoinDesk. Ripple President Monica Long has also indicated that she anticipates a spot ETF approval to be forthcoming, suggesting that regulatory advancements associated with the new administration will accelerate this process.
XRP has successfully broken free from a consolidation pattern that began in early December, as highlighted by CoinDesk markets analyst Omkar Godbole. This breakout has opened the door for a potential new rally, with a further 15% increase from current levels needed to achieve fresh all-time highs exceeding the January 2018 peak of $3.4. However, factoring inflation, XRP would need to surpass $4.24 for a true record high, according to Galaxy’s head of research, Alex Thorn.
Additionally, significant accumulation of XRP tokens by large investors over the recent weeks could propel the token even closer to new historical records. Analytics firm Santiment has reported that addresses holding between 1 million and 10 million tokens have increased their collective holdings by 1.4 billion tokens—valued at approximately $3.8 billion—since November 12, showcasing continued accumulation despite prior price consolidations.
For further insights on XRP, read more: XRP Interest Jumps as Brad Garlinghouse Meets With Trump
