XRP Price Surges 274% in 30 Days, Reaches 7-Year High amid Regulatory Changes and ETF Speculation
XRP, the cryptocurrency connected with Ripple, has recently hit its highest price in almost seven years, soaring past $1.93. This is a major milestone, as the last time XRP reached this level was back in January 2018 when it hit its all-time high of $3.40. Currently sitting at $2.45, XRP has seen a remarkable surge of almost 30% in the past week alone and has gained a whopping 274% over the last 30 days. With a market capitalization of $136 billion, XRP now holds the position as the third-largest cryptocurrency, trailing behind only Bitcoin and Ethereum.
On December 1, Ripple released 1 billion XRP tokens valued at $1.92 billion as part of its supply management strategy. While this move initially raised concerns about potential inflationary effects, XRP only experienced a modest 2.4% price dip following the release and quickly resumed its upward climb. Ripple’s strategy aims to bring predictability to token distribution, with 37.24 billion XRP tokens still being held in escrow.
The recent resignation of SEC Chair Gary Gensler, set to take effect in January 2025, has had a significant impact on XRP’s performance. Gensler’s tenure was marked by strict regulatory actions against cryptocurrency firms, particularly Ripple. However, his departure has sparked optimism for a more favorable regulatory environment under the incoming administration, leading to increased hope for a resolution in Ripple’s ongoing legal battle with the SEC and boosting overall market sentiment.
Speculation surrounding the potential launch of an XRP-based exchange-traded fund (ETF) has also played a role in driving up the price of XRP. Global investment firms like WisdomTree and Bitwise have shown interest in introducing such products, reflecting a positive outlook on regulatory changes. Additionally, XRP’s derivatives market has seen record activity, with open interest surging 37% in 24 hours to reach $3.19 billion, marking an all-time high.
Despite these positive developments, analysts are warning about the risks associated with leveraged trading, which has been a key driver of XRP’s recent momentum. Past speculative surges in November resulted in a 17% price drop, raising concerns about potential liquidations that could trigger further volatility. Leveraged positions are especially vulnerable to rapid sell-offs if prices suddenly decline.
Nevertheless, XRP has delivered substantial returns for long-term holders, with a significant 1,420% gain from its low in March 2020 of $0.127. Surpassing Solana and Tether in market capitalization, XRP has solidified its position as a major player in the cryptocurrency space. Although it is still 40% below its all-time high, XRP’s current trajectory reflects its resurgence, driven by regulatory changes, market speculation, and strategic initiatives by Ripple.
Remember, when it comes to cryptocurrency investments, it’s important to conduct your own research and analysis before making any decisions. This article is not intended as financial advice, but rather as informational content to help you navigate the ever-changing world of cryptocurrencies.
