XRP Surges Past $2, Becomes Third-Largest Cryptocurrency by Market Cap Amid Legal and Regulatory Developments

The cryptocurrency market is buzzing right now. XRP, the token that powers the Ripple ecosystem, has jumped past the $2 mark. This surge has solidified its position as the third-largest cryptocurrency by market cap.

Currently, XRP's market cap exceeds $135.37 billion. It has overtaken the USDT stablecoin, which stands at $134.17 billion, and Solana, valued at $108.01 billion. This shift has sparked fresh discussions about whether XRP can challenge Ethereum's dominance.

As of now, XRP trades at $2.37. That’s a remarkable 25.57% increase since the start of the week. Crypto enthusiasts are speculating that this upward trend could eventually put XRP in a position to rival Ethereum (ETH), which has a market cap of $441.46 billion. Recently, Amelie, a crypto enthusiast, mentioned a meeting between Cardano founder Charles Hoskinson and Ripple CEO Brad Garlinghouse, adding to the excitement.

There are also rumors swirling that Garlinghouse might be a candidate for a potential crypto czar under Donald Trump. Trump is known for his pro-crypto stance, and this could elevate XRP's status even further.

Meanwhile, XRP's rise coincides with renewed focus on Ripple’s high-profile legal battle with the U.S. SEC. This case began back in December 2020 and has seen XRP navigate significant market fluctuations and regulatory uncertainty.

XRP has managed to regain its pre-lawsuit valuation, reminiscent of the time before the SEC classified Bitcoin and Ethereum as non-securities in 2018. This was just before the Hinman speech in June, which argued that these assets are “sufficiently decentralized.” Following that speech, Ethereum’s market cap overtook XRP’s in November 2018.

The “Hinman emails,” obtained during the Ripple case, revealed some internal disagreements within the SEC regarding the speech. Some officials expressed concerns about its implications for the regulatory status of other cryptocurrencies, which still remains unclear. Despite this, XRP's regulatory status is still unresolved, and legal experts predict the case could extend into July 2025.

Attorney John Deaton, a strong advocate for Ripple and XRP investors, has pledged to continue supporting the case, even after his unsuccessful Senate run. His commitment shows just how important this case is for the broader crypto industry.

On the other hand, the SEC’s aggressive approach to crypto under Chair Gary Gensler has faced widespread criticism. Calls for regulatory clarity are growing louder. Some observers believe Gensler’s potential resignation could mark a turning point, paving the way for a more crypto-friendly regulatory environment, especially with a pro-crypto administration.

Many believe that Trump’s administration could bring favorable policies for cryptocurrencies. If that happens, Ripple’s legal standing might improve, potentially ending years of regulatory uncertainty.

However, analysts are cautious. Despite recent gains, there’s a risk of profit-taking among XRP whales, especially with significant spikes in whale-to-exchange transactions.

“Historically, spikes in whale-to-exchange transactions align closely with XRP price peaks,” noted a CryptoQuant analyst. “This suggests that whales often move large amounts of XRP to exchanges to sell near local or cycle tops. The latest spike coincides with XRP reaching a local price of around $2.3. This could indicate that whales are preparing for potential profit-taking or increased market activity.”