XRP, the digital currency used by U.S. blockchain payment firm Ripple, has reclaimed its position as the third-largest cryptocurrency by market capitalization. This resurgence marks a significant comeback after being displaced from the top three in December 2020 following a lawsuit by the U.S. Securities and Exchange Commission (SEC) accusing Ripple of facilitating an “unregistered digital asset securities offering.”
The Fall and Resurgence of XRP
When the SEC filed its lawsuit in December 2020, XRP’s market value plummeted from about $0.50 to $0.17, erasing over $15 billion in market capitalization. However, it managed to stay within the top ten cryptocurrencies, highlighting its enduring relevance and community support despite its lower ranking.
The year 2024 marked a turning point for Ripple and XRP as Ripple achieved multiple legal victories against the SEC’s charges. These successes, combined with Donald Trump’s presidential election win, sparked a robust rally in XRP’s value, especially notable in November. This surge allowed XRP to ascend past competitors such as Tether’s USDt, Binance’s BNB, Solana, and Circle’s USD Coin (USDC), situating it just behind Bitcoin and Ether.
Online Popularity and Market Dynamics
Parallel to its recovery in market position, XRP’s popularity surged online. Google Trends data showed that searches for “XRP” exceeded those for “crypto” several times in November, reflecting heightened public interest. XRP even briefly surpassed Ethereum in Google search popularity early in the month, although it has not yet managed to outpace Bitcoin.
The latest trading data shows XRP at $2.35, a 24% increase over the past 24 hours. Since November 1st, the price of XRP has soared by 341%, with an annual return around 280%. According to crypto trader Christopher Jaszczynski, XRP could potentially overtake Ethereum in market cap if its price reaches $7.75.
| Date | Event | XRP Price | Market Cap Change |
|---|---|---|---|
| Dec 2020 | SEC sues Ripple | $0.17 | -$15 billion |
| Nov 2024 | Trump’s election victory | $2.35 | +341% since Nov 1 |
| Ongoing | Legal victories against SEC | Variable | Positive trend |
The journey of XRP over the past four years underscores not just a recovery but a potential for future growth and stability. Overcoming significant regulatory challenges and market volatility, XRP’s comeback is a testament to Ripple’s legal strategies and the steadfast support of its community. As Ripple looks to move beyond its legal challenges, the crypto world watches to see if XRP can maintain its top-three position and challenge Ethereum for the second spot.
Featured image credit: CryptoWallet via Flickr
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