XRP has surged to its highest levels since April 2021, with bullish momentum driving the token toward the $2 mark, signaling a strong comeback for the once-struggling cryptocurrency.
XRP Nears $1.70, Source: CoinMarketCap
The token has gained 14% in the past 24 hours, outpacing Bitcoin and other major cryptocurrencies. This extends a month-long rally in which XRP has risen by 200%, making it one of the best-performing major tokens alongside Dogecoin (DOGE).
Prices approached $1.70 during the European morning, with trading volume soaring 30% to $10 billion, largely driven by activity on South Korea’s UpBit exchange.
The rise began in early November, following Republican gains in US elections, which boosted investor confidence in tokens associated with US-based companies, including Ripple Labs, XRP’s key backer.
Mid-November brought news that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler will step down in January. This development has fueled hopes for a more crypto-friendly regulatory environment, boosting XRP’s appeal among traders and investors.
Open interest in XRP-denominated futures positions has hit record highs, with over 2 billion tokens (valued at over $2 billion) actively traded. This reflects heightened expectations of market volatility and continued price gains.
Traders are anticipating the approval of an XRP exchange-traded fund (ETF) in the U.S., especially with regulatory conditions potentially easing. The launch of a money-market fund on the XRP Ledger has further strengthened institutional interest, as the ledger uses XRP for transaction fees.
Ripple recently announced its intent to invest in the rebranded Bitwise Physical XRP ETP, previously known as the ETC Group Physical XRP. This news caused a 10% price spike, underlining Ripple’s ongoing commitment to XRP’s ecosystem.
