XRP continued its barnstorming price rally on Sunday, rocketing by around 30%. According to CoinGecko data, the coin has reached a new multi-year high of $2.48.
The Ripple-promoted crypto now holds the third spot in terms of market capitalization, surpassing stablecoin giant Tether (USDT) and “Ethereum killer” Solana (SOL).
XRP’s latest rally has seen it become the cynosure of all eyes within the crypto space and has sparked questions about whether it’s about to take on Ethereum, the world’s second-largest cryptocurrency.
XRP Tops $2 Following Blistering Rally
XRP started surging alongside other major cryptocurrencies, including Bitcoin and Solana (SOL), following Republican Donald Trump’s election win on Nov. 5. However, the Ripple-affiliated has begun outperforming other crypto peers.
XRP’s outsized price performance has helped it reclaim the top three spot after coming close to dropping out of the top 10 following the Securities and Exchange Commission’s protracted lawsuit against Ripple.
XRP’s rally comes amid growing optimism over its regulatory future. President-elect Trump made a slew of pro-crypto promises on the campaign trail, and SEC chair Gary Gensler is set to resign effective January 20, 2025, when Trump will be inaugurated.
The SEC has targeted Ripple for alleged securities violations, leaving XRP with an uncertain future in the United States. However, the forthcoming regime change has given investors confidence that the token will face fewer regulatory challenges going forward and could gain traction for spot exchange-traded funds (ETFs) and other financial applications.
XRP was trading hands for $2.43 as of press time. It’s still roughly 28.4% away from its lifetime peak of $3.40 registered back in January 2018, but again, it’s closer than it has been in almost seven years.
Is XRP Coming To Oust Ether?
With its current market cap of $138.6 billion, XRP now trails only Bitcoin and Ethereum in the crypto asset rankings. Still, the third-largest crypto has a long way to go to overtake Ether, which currently boasts a market cap of $440 billion.
However, crypto influencer Ben “BitBoy” Armstrong recently reiterated his belief that XRP will surpass Ethereum in market value during this bull cycle.
“$ETH you can run, but you can’t hide!” BitBoy wrote in a Friday post on X.
Meanwhile, a top analyst has noted that XRP may be witnessing a “leverage-driven” pump as its price soars. CryptoQuant strategist Maarten Regterschot warned in a Nov. 1 post that open interest in XRP has jumped massively and could result in a sharp sell-off.
“Open Interest is up 37% already — watch for volatility. The last similar event led to a -17% drawdown,” said Maarten. “Stay sharp, manage risk accordingly.”