XRP, a prominent digital asset ranked among the top three by market capitalization, experienced a significant surge, climbing 10% within a 24-hour period on Thursday. This upward momentum brought it closer to its historical peak. Just a day earlier, on Wednesday, the cryptocurrency, which maintains strong links to the well-known Ripple company, surpassed the $3 mark for the first time in seven years.
According to Patrick Liou, a key figure in institutional sales at the Gemini digital currency exchange, the current price rally is largely attributed to widespread expectations that the incoming Trump administration will actively support a regulatory environment that favors cryptocurrencies, potentially going even further than previously anticipated.
Liou explained, “The most recent driving force, responsible for pushing the price from the high $2 range to above $3, stems from discussions suggesting the Trump administration might consider a reserve system backed by U.S.-based crypto firms with their own digital tokens.”
While former President Trump has openly advocated for a national reserve based on Bitcoin, a report published by the New York Post on Thursday indicated a willingness from Trump to consider an “America-first strategic reserve” focused on digital currencies developed within the U.S., such as Solana, USD Coin, and Ripple. Establishing a strategic reserve for XRP would significantly validate the token as a reliable store of value and likely increase its market price. However, it’s crucial to acknowledge that this information relies on unnamed sources and has not yet been officially confirmed.
Liou also pointed to other factors fueling XRP’s value, including speculation surrounding the potential approval of XRP exchange-traded funds (ETFs) by the SEC. Ripple President Monica Long mentioned this possibility in a Bloomberg interview on January 7th. Moreover, investors are anticipating the possibility of the SEC’s ongoing legal battles involving Ripple and XRP being resolved more favorably under a Trump administration, according to Liou.
David Duong, the head of institutional research at Coinbase, commented, “Many are trying to interpret the implications of the evolving regulatory landscape. Observers are noting that Ripple Labs and its representatives seem to be building stronger connections with the incoming administration.”
Adding to this, Ripple CEO Brad Garlinghouse has reportedly met with the President-elect on at least one occasion. Garlinghouse shared a photo of himself with the President-elect on X on January 7th, suggesting that Ripple may have direct communication channels and potential influence within the new administration. This has further heightened interest in Ripple’s XRP.
After breaking the $3 barrier for the first time in several years, XRP’s value continued to climb, reaching around $3.35 on Thursday. This put it within striking distance of reaching its all-time high value.
It’s important to note that, unlike traditional stock markets, a universally agreed-upon all-time high for cryptocurrencies often doesn’t exist. This is because prices are subject to supply and demand dynamics across various trading platforms. For example, Binance lists XRP’s highest value as $3.84, while CoinGecko reports it as $3.40.