XRP Surges to $3: Outperforms Crypto Market by Massive 11%

• XRP Hits $3: The token reached a seven-year high, outperforming broader crypto markets.
• Key Drivers: Spot ETF speculation, legal developments, and whale accumulation.
• Future Outlook: A 15% rise could set a new inflation-adjusted all-time high above $4.24.

XRP has surged to $3 for the first time since 2018, driven by market optimism and large-scale accumulation by major holders.

XRP, the native token of the XRP Ledger, reached $3 on Wednesday, marking a seven-year high. The token’s price is up 11% in 24 hours, outperforming Bitcoin’s 3.6% gain. At $2.95, the token boasts a 488% increase since Donald Trump’s election victory.

With a market capitalization of $170 billion, XRP reclaimed its spot as the third-largest cryptocurrency, surpassing Tether’s USDT stablecoin. This market cap is now larger than BlackRock, the world’s largest asset management firm.

One significant driver is the growing anticipation of a spot XRP ETF. Ripple’s President, Monica Long, recently expressed optimism about its approval, citing favorable regulatory changes likely under the incoming U.S. administration. This has ignited speculation and excitement among investors, further boosting demand for the tokens.

The ongoing legal battle between Ripple and the SEC has also played a pivotal role in keeping XRP in the spotlight. As the case over the token’s sales drags on, many market participants are speculating on a resolution that could favor Ripple, potentially paving the way for clearer regulations and enhanced adoption.

Additionally, Ripple’s innovative efforts, such as the launch of its stablecoin RLUSD, have bolstered its standing within the financial ecosystem. These new initiatives highlight Ripple’s commitment to expanding its offerings and solidifying its presence in the evolving digital asset space.

Market analysts suggest the rally broke a consolidation pattern seen since early December. A further 15% price increase would propel XRP to new all-time highs above $3.4. Adjusting for inflation, the token needs to surpass $4.24 to achieve a true record, according to Galaxy Research’s Alex Thorn.

XRP Whale Accumulation at Record Levels

Large investors are fueling the rally with significant token accumulation. Analytics firm Santiment reported that addresses holding 1 million to 10 million tokens added 1.4 billion coins worth $3.8 billion since mid-November.

This consistent accumulation by whales indicates strong market confidence, particularly as prices consolidated following early December highs.

XRP’s rally reflects a growing appetite for digital assets, bolstered by Bitcoin’s surge to $100,000. The gains underscore market optimism about regulatory clarity and a more robust crypto infrastructure.

While XRP has reclaimed its place among the top three cryptocurrencies, further growth hinges on regulatory outcomes and broader adoption. For traders and long-term holders, this milestone could signify the beginning of a new era for the altcoin in the evolving crypto landscape.