The recent surge in XRP’s market cap has propelled it to become the fifth-largest cryptocurrency by market capitalization, surpassing BNB. XRP’s market cap reached $99 billion, its highest in over three years. This surge in XRP’s value is attributed to strong bullish momentum, with the altcoin experiencing a more than 230% increase in November. This raises the question of whether XRP is on route for a historic comeback after underperforming in previous bull markets.
One of the factors contributing to XRP’s recent surge is the potential regulatory clarity promised by Donald Trump’s administration. With institutional interest in the token increasing, long-term holders of XRP may finally see a promising reward. The resignation of SEC chair Gary Gensler earlier this month has also generated optimism that Ripple might be out of the SEC’s crosshairs. This positive outlook has been reflected in major institutional investors’ recent actions, such as WisdomTree filing for an XRP ETF in Delaware.
The potential approval of an XRP ETF could attract more institutional funds to the altcoin and drive its market demand even further. Similar trends have been observed with Bitcoin ETFs, which saw soaring institutional demand for the cryptocurrency upon approval. Additionally, Trump’s administration is expected to provide a favorable regulatory backdrop for cryptocurrencies in 2025. Reports suggest that the president-elect is considering cutting the capital gains tax for all US-based cryptocurrencies, including XRP.
Ripple is also gearing up for major upgrades to the XRP Ledger, aimed at enhancing liquidity and attracting institutional investors. According to influencer Brett, these upgrades could lead to an influx of hundreds of millions into XRPL tokens, particularly in the DeFi sector. Furthermore, Ripple’s CEO, Brad Garlinghouse, has actively supported Trump’s campaign and donated $25 million to the 2026 US midterms. This suggests a pro-XRP regulatory environment in the US, which could further drive the altcoin’s demand.
In conclusion, XRP’s recent surge has positioned it as a top contender in the cryptocurrency market, potentially signaling a significant comeback for the altcoin. The increased institutional interest driven by potential regulatory clarity and major upgrades to the XRP Ledger bodes well for XRP’s future growth. With the potential approval of an XRP ETF and a supportive regulatory environment in the US, XRP may continue to attract investors and solidify its position in the cryptocurrency market. As always, investors are advised to verify facts independently and consult with professionals before making any decisions based on this content.
