In just one week, Ripple's XRP has gained over 85%, pushing it past $1 again and ahead of DOGE. What explains this increase?
Ripple sees the price of its XRP token explode upwards
In just one week, Ripple's XRP token managed to once again exceed the symbolic threshold of 1 dollarafter having progressed by more than 85%. At the time of writing these lines, the asset is trading at $1.03, up 13.78% over 24 hours, after briefly exceeding $1.26 during the day on Saturday:
XRP price in daily data
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Thus, the capitalization of XRP, valued at $59 billion, was able to surpass that of DOGE, amounting to $51.35 billion.
Several factors can explain this increase. First of all, there is obviously the victory of Donald Trump, whose promises of favorable regulation have benefited all cryptocurrencies. But above all, it is the prospect of an imminent resignation of Gary Gensler which has revived optimism around the asset.
Indeed, let us recall that the Securities and Exchange Commission (SEC) and Ripple have been engaged in a legal standoff for 4 years now, and that the Commission appealed a court decision last month, to try to obtain more than the $125 million fine imposed on the company.
With the upcoming change in hierarchy within the federal agency, this could then hypothetically be synonymous with an abandonment of sanctions. However, the irony of history is that it was not Gary Gensler who initiated the proceedings against Ripple, but Jay Clayton, on December 22, 2020, the day before his resignation. At the time, the person concerned had been appointed head of the SEC by Donald Trump during his first term, and the latter has now granted him the post of federal prosecutor for the Southern District of New York.
???? Also in the news — Former SEC Director Appointed Federal Prosecutor by Donald Trump
Despite its recent increase, XRP still remains very far from its all-time high at $3.4reached on January 7, 2018. With the prospect of an outcome of the conflict, it will be interesting to see how the asset behaves over the coming months.
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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