Several fundamental and regulatory developments are pushing XRP prices to levels not seen since April 2021, and bulls are currently pegging them as a sign of renewed strength for the previously struggling token. All eyes are on the $2 mark.
XRP surges 14% in the past 24 hours, outpacing Bitcoin and other major cryptocurrencies, extending a month-long run of 200% price increases and tying Dogecoin (DOGE) as the best-performing major token. It became.
European prices were close to $1.70 in the morning, with 24-hour trading volume up 30% to $10 billion. Volume was led by South Korean exchange Upbit.
The cause of Friday's surge was not immediately clear, but several factors have contributed to XRP's appeal in recent weeks.
The rally began in early November after Republican victories in the US elections renewed investor confidence in tokens with ties to US companies such as Ripple Labs, which is closely associated with XRP. .
XRP rose again in mid-November when U.S. Securities and Exchange Commission Chairman Gary Gensler announced he would step down in January, raising hopes for a more relaxed regulatory environment.
Open interest in XRP and USD is above record levels, with over 2 billion tokens (worth over $2 billion at current prices) in futures positions betting on further market volatility.
Some traders are anticipating the introduction of XRP exchange-traded funds (ETFs) in the US, with some especially hoping for a loosening of the regulatory environment. Money market funds have been launched on the XRP Ledger, a network that uses XRP as fees for transaction confirmation and processing, raising expectations for use by institutional investors.
As reported on Wednesday, Ripple said it plans to invest an unspecified amount in the newly rebranded Bitwise Physical XRP ETP (previously known as ETC Group Physical XRP). This announcement caused XRP to rise by 10% at the time.
