Ripple (XRP-USD) experienced a remarkable rally in November 2024, skyrocketing by 420%. Rising from $0.50 to a peak of $2.63, XRP’s market capitalization surpassed $150 billion, making it the third-largest cryptocurrency globally, trailing only Bitcoin and Ethereum. Over the past 7 days, XRP has gained 94%.
The total crypto market capitalization has added 2.6% in 24 hours, reaching $3.47 trillion. Recently, growth has been driven by the rise of XRP and a little Litecoin. Both altcoins are rising in hopes of a softening of the regulatory regime. The fuel for this rally appears to be the liquidation of short positions amid positive regulatory expectations.
Catalysts Behind the Surge
Stablecoin RLUSD Announcement
The primary driver of XRP’s surge has been the anticipation surrounding Ripple Labs’ proposed stablecoin, RLUSD. Reports suggest that the New York Department of Financial Services (NYDFS) is close to approving this dollar-pegged stablecoin, with Ripple aiming for a December 4 launch. Fox News broke this story on November 29, prompting a 60% jump in XRP’s price from $1.50 to $2.40 within a single day.
The launch of RLUSD is seen as an important milestone for Ripple, potentially bridging the gap between traditional finance and blockchain technology, and improving financial accessibility for users in regulated markets.
Ripple’s ETF Momentum
Investor optimism around XRP-based exchange-traded funds (ETFs) has also significantly fueled the rally. Asset management firms, including WisdomTree, 21Shares, Canary Capital, and Bitwise, have recently filed applications with the U.S. Securities and Exchange Commission (SEC) to launch spot XRP ETFs. These ETFs would directly hold XRP tokens, making the asset more accessible to institutional investors. Analysts believe ETF approval would provide a significant liquidity boost to the XRP ecosystem.
SEC Chair’s Potential Resignation
An additional growth factor was the announcement by the head of the Securities and Exchange Commission (SEC) Gary Gensler that he planned to resign in January. Since 2020, the SEC has been in litigation with Ripple, accusing the company of raising $1.3 billion through the sale of unregistered XRP securities.
"Gensler stepping down is also a plus as this means that the SEC under a new leadership is likely to settle or withdraw many of the SEC's outstanding lawsuits, including the appeal against Ripple," commented by Peter Chung, analyst at Presto Research.
Historical Comparisons and Market Dynamics
The last time XRP saw such significant price levels was in January 2018, during the cryptocurrency bull run height, when it reached an all-time high of $3.30. The current rally, however, stands out due to the convergence of regulatory, technological, and institutional interest.
XRP's meteoric rise has also reshaped the broader cryptocurrency market. The asset surpassed Tether’s Tether and Solana (SOL) to claim the third spot in market capitalization. This shift highlights XRP’s growing relevance as a financial tool rather than just a speculative asset.
Broader Implications
Ripple’s advancements extend beyond price action, signaling a shift in the industry’s trajectory. The successful launch of RLUSD could pave the way for further stablecoin integrations, positioning XRP as a cornerstone for cross-border payments and decentralized finance solutions. Additionally, an approved XRP ETF would mark a new era of institutional involvement in cryptocurrency markets.
Experts also highlight the potential long-term benefits of improved financial infrastructure around XRP. A regulated stablecoin tied to the XRP Ledger could attract new projects, enhance liquidity, and solidify the platform’s role as a key player in blockchain innovation.
Risks and Investor Considerations
Despite the optimism, analysts caution against speculative exuberance. The cryptocurrency market remains highly volatile, and XRP’s rapid ascent could prompt profit-taking by long-term holders. Furthermore, uncertainties surrounding regulatory approvals for RLUSD and ETFs, along with the ongoing Ripple-SEC lawsuit, remain key risks.
Pauline Shangett, CMO at cryptocurrency exchange ChangeNOW, noted that "the stable overall market capitalization suggests that liquidity in XRP has shifted from other altcoins, which have shown little growth in recent days." Shangett added:
"For new XRP investors, the timing may not be ideal due to a potential correction before reaching new all-time highs (ATHs). However, the outlook for the U.S. stock market remains bullish, with no major concerns on the horizon. Investors have positive expectations for a Christmas rally, though external geopolitical risks or labor market data due Friday could pose challenges."
XRP’s performance in November 2024 underscores the transformative potential of positive regulatory and institutional developments in the cryptocurrency space. While challenges remain, the asset’s recent achievements point to a promising future for Ripple and its growing ecosystem.