XRP has surged back into the spotlight, crossing a major milestone with its market capitalization surpassing $100 billion for the first time since January 2018. This achievement marks a pivotal moment in the digital asset’s journey, reaffirming its position as one of the top cryptocurrencies by market value. According to CoinGecko data, XRP now ranks as the fifth-largest crypto asset, overtaking BNB and trailing only Bitcoin, Ethereum, Tether, and Solana.
Over the past 24 hours, XRP’s price climbed 18% to reach $1.80, with weekly gains hitting 22%. Since the beginning of 2025, the token has posted an impressive 193% increase. At current valuations, XRP holds a market cap of approximately $101 billion, just behind Solana’s $114 billion. This resurgence is not just a flash in the pan—it’s fueled by a confluence of macro-level optimism, regulatory shifts, and growing institutional interest.
Key Drivers Behind XRP’s Surge
Several catalysts have contributed to XRP’s recent rally. One of the most significant was the outcome of the U.S. presidential election, where Donald Trump secured a second term. Known for his pro-crypto stance, Trump’s return to the White House has reignited investor confidence across the digital asset space. His administration has signaled support for clearer crypto regulations and innovation-friendly policies, which many believe will benefit projects like Ripple and its native token, XRP.
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However, while political developments provided a favorable backdrop, the most direct trigger for XRP’s price explosion was the resignation of SEC Chair Gary Gensler. Markets reacted swiftly when Gensler hinted at stepping down, pushing XRP above $1 for the first time since November 2021. Upon confirmation of his departure, the token surged another 25% to $1.40.
Gensler’s exit is widely seen as a potential turning point in Ripple’s long-running legal battle with the Securities and Exchange Commission (SEC). The lawsuit, which questioned whether XRP should be classified as a security, had cast a shadow over the asset for years. With new leadership at the SEC, experts anticipate that ongoing cases against crypto firms—including Ripple—could be dismissed or settled more amicably.
This shift in regulatory tone has opened doors for broader adoption and innovation within the XRP ecosystem.
Expanding Use Cases and Institutional Momentum
Beyond regulatory relief, XRP’s fundamentals are strengthening. Ripple continues to expand its business footprint, particularly in cross-border payments and tokenized assets. The company is actively developing solutions on the XRP Ledger (XRPL), including decentralized exchanges and tokenized money market funds—innovations that enhance utility and attract institutional capital.
One notable development is Ripple’s planned launch of RLUSD, a U.S. dollar-pegged stablecoin. The firm is reportedly close to securing approval from the New York Department of Financial Services (NYDFS), a critical step toward mainstream integration. If approved, RLUSD could become a key player in the growing stablecoin economy, further boosting demand for the underlying XRPL network.
In parallel, asset managers such as Bitwise and Canary Capital are moving forward with applications for XRP exchange-traded funds (ETFs). While the SEC has yet to approve a spot XRP ETF, increasing institutional filings suggest growing confidence in long-term regulatory acceptance.
These developments highlight a shift from speculative trading to real-world utility—a trend that often precedes sustained price appreciation.
Technical Indicators Signal Caution Amid Bullish Momentum
Despite strong momentum, technical analysis suggests caution in the short term. CryptoQuant analyst Maartunn has flagged that much of XRP’s recent rally appears to be driven by leveraged trading. Open interest in XRP futures has increased by 37%, a sign of aggressive positioning that can amplify volatility.
🚨 $XRP is experiencing a leverage-driven pump!
Open Interest is up 37% already—watch for volatility. The last similar event led to a -17% drawdown.
Stay sharp, manage risk accordingly.
Historically, such spikes in leverage have preceded sharp corrections. In fact, a comparable scenario in late 2024 resulted in a 17% price drop shortly after the peak.
Additionally, XRP’s Relative Strength Index (RSI) currently stands at 89—well into overbought territory. Typically, an RSI above 70 indicates that an asset may be overextended and due for a pullback. However, it’s important to note that during strong bull runs, RSI can remain elevated for extended periods without immediate correction.
Traders should remain vigilant and consider risk management strategies such as profit-taking or hedging as XRP approaches key resistance levels near $1.90 and $2.00.
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Frequently Asked Questions (FAQ)
Q: Why did XRP’s market cap cross $100 billion?
A: The surge was driven by a mix of favorable political developments, SEC leadership changes, institutional interest in XRP ETFs, and Ripple’s expanding product ecosystem—all contributing to renewed investor confidence.
Q: Is XRP now considered a top-tier cryptocurrency again?
A: Yes. With a market cap exceeding $101 billion, XRP ranks fifth globally by market value, ahead of BNB and behind only Bitcoin, Ethereum, Tether, and Solana.
Q: Could XRP reach $2 in price?
A: Technically possible if bullish momentum continues. However, current overbought conditions and high leverage suggest potential short-term volatility or correction before reaching that level.
Q: What impact does Gary Gensler’s resignation have on Ripple’s legal case?
A: His departure may lead to a more balanced regulatory approach at the SEC, increasing the likelihood of a settlement or dismissal of Ripple’s ongoing litigation—an outcome long anticipated by investors.
Q: Are there any upcoming catalysts for XRP?
A: Yes. Pending decisions on XRP ETF applications, potential RLUSD stablecoin approval, and continued global adoption of XRPL-based payment solutions could serve as future price drivers.
Q: How does leverage affect XRP’s price stability?
A: High open interest in futures contracts increases market sensitivity to sentiment shifts. A sudden reversal could trigger liquidations and rapid price declines.
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Conclusion
XRP’s return to the $100 billion market cap club is more than just a number—it reflects renewed faith in its technology, use cases, and regulatory trajectory. While short-term caution is warranted due to overbought indicators and leveraged exposure, the broader outlook remains positive.
With institutional momentum building, product innovation accelerating, and regulatory winds shifting favorably, XRP is positioning itself not just as a speculative asset but as a foundational piece of the future financial infrastructure. As always, investors should balance opportunity with risk awareness in this dynamic environment.
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