Main Points:
- XRP has regained its position as the third-largest cryptocurrency by market capitalization after four years, following Ripple’s legal victories against the SEC.
- Since November, XRP’s price has surged significantly, with an annual return of approximately 280%.
- Google Trends shows “XRP” searches surpassing general cryptocurrency-related searches, reflecting heightened interest.
- Despite XRP’s growth, its market capitalization still trails Ethereum (ETH) by 219%.
XRP’s Resurgence
In a dramatic return to prominence, XRP, the cryptocurrency developed by Ripple Labs, has climbed to third place in market capitalization, a position it last held in 2020 before a lawsuit by the U.S. Securities and Exchange Commission (SEC) disrupted its trajectory. Recent developments, including Ripple’s legal victories, have ignited significant momentum for XRP, leading to a 341% price surge since November 1, 2024.
Ripple’s Legal Battle and XRP’s Fall from Grace
In December 2020, Ripple was sued by the SEC for allegedly offering unregistered securities, causing XRP’s price to plummet from $0.50 to $0.17 and erasing over $15 billion in market capitalization. The lawsuit relegated XRP to the seventh position among cryptocurrencies by market capitalization, a spot it maintained for four years.
However, Ripple’s partial legal triumphs in 2024 marked a turning point, instilling investor confidence and driving XRP’s resurgence.
XRP Overtakes Stablecoins and Binance Coin
Historically overshadowed by stablecoins like USDT and other major assets such as Binance’s BNB and Solana’s SOL, XRP has now surpassed them to become the third-largest cryptocurrency, trailing only Bitcoin (BTC) and Ethereum (ETH). According to legal expert John Deaton, this milestone reflects a return to XRP’s pre-SEC lawsuit standing.
Google Trends: XRP Dominates Online Interest
A notable indicator of XRP’s growing popularity is its dominance on Google Trends. In November 2024, searches for “XRP” outpaced those for “crypto” multiple times, highlighting a surge in public interest. The cryptocurrency even surpassed Ethereum (ETH) in search volume but still lags behind Bitcoin (BTC).
The heightened search activity correlates with XRP’s price breakout and reflects a broad-based interest among retail and institutional investors alike.
Can XRP Surpass Ethereum?
Despite XRP’s meteoric rise, it still has a considerable gap to close before overtaking Ethereum. At the time of writing, Ethereum’s market capitalization is 219% higher than XRP’s. Cryptocurrency analyst Christopher Jaszczynski predicts that XRP would need to reach $7.75 per coin to surpass Ethereum’s valuation.
Currently, XRP is trading at $2.35, marking a 24% increase in 24 hours and a 280% annual return.
Broader Implications for the Crypto Market
XRP’s resurgence is significant not only for Ripple but also for the broader cryptocurrency market. Its recovery demonstrates the resilience of cryptocurrencies even after prolonged regulatory scrutiny. Moreover, it underscores the growing importance of legal clarity in driving market confidence.
The case has also set a precedent for how the SEC and other regulators approach cryptocurrencies. Ripple’s partial victories suggest that more digital assets may be scrutinized for their classification as securities, potentially reshaping the regulatory landscape.
Market Sentiment and Future Prospects
XRP’s return to the top three has buoyed investor sentiment, with many speculating about further gains. However, some analysts caution that the current rally could be influenced by speculative trading, making it essential for Ripple to sustain real-world adoption to maintain long-term growth.
Ripple’s ongoing partnerships and technological advancements are critical in bolstering XRP’s utility. Its focus on cross-border payments remains a cornerstone of its value proposition, potentially paving the way for greater adoption among financial institutions.
XRP’s Road Ahead
XRP’s historic comeback is a testament to the cryptocurrency’s resilience and Ripple’s determination to navigate regulatory hurdles. While its current position as the third-largest cryptocurrency is a significant achievement, the road ahead is paved with challenges, including closing the gap with Ethereum and maintaining market momentum.
The heightened public interest and legal clarity surrounding XRP could catalyze further growth, solidifying its role in the evolving cryptocurrency landscape. Investors and blockchain enthusiasts will undoubtedly watch XRP’s journey closely as it strives to reclaim its former glory and set new milestones.
