XRP, the cryptocurrency tied to Ripple Labs Inc., has hit a record high of $3.40, marking significant gains of over 60% so far this year. This surge comes amid growing optimism surrounding a potential shift towards a more crypto-friendly regulatory environment under the incoming Trump administration.
XRP Hits Record High Amid Strong Support
XRP’s rise to $3.40 on Thursday has catapulted it to new heights, making it one of the most successful cryptocurrencies of 2025. As the third-largest cryptocurrency by market value, XRP’s performance has been fueled by expectations of a more favorable stance from the U.S. Securities and Exchange Commission (SEC) under new leadership. The token’s supporters, known as the “XRP Army,” have rallied online, driving discussions on social media platform X (formerly Twitter).
Ripple Labs, based in San Francisco, has faced a long-standing legal battle with the SEC. In 2020, the SEC sued Ripple, alleging that the company had been offering unregistered securities. However, a U.S. district court ruled that XRP was considered a security when sold to institutional investors but not when sold to retail investors—a ruling seen as a win for the crypto industry. While the SEC is appealing this decision, the arrival of a new, pro-crypto SEC chair could potentially impact the outcome of the case.
Optimism Grows with New Leadership
Strahinja Savic, head of data and analytics at FRNT Financial Inc., expressed optimism about the future of XRP, noting that the resolution of the legal case could allow Ripple to focus on further adoption and use of the token. “This optimism is additionally buoyed by the ‘XRP Army,’ the fervent and highly loyal social media-based community that is highly supportive of the asset,” Savic said.
Ripple’s CEO, Brad Garlinghouse, has also weighed in on the growing optimism, particularly in light of the incoming Trump administration. In a post on X, Garlinghouse emphasized the potential for positive changes in the crypto market under Trump’s leadership, including appointments for crypto czar and SEC chair. “The ‘Trump effect’ is already making crypto great again,” he wrote.
Potential for More Crypto Exchange-Traded Funds
A more crypto-friendly SEC could lead to the approval of additional exchange-traded funds (ETFs) for cryptocurrencies. Garlinghouse has stated that an XRP ETF is “just inevitable” as institutional interest in crypto continues to rise. He also highlighted growing hope that Trump’s administration will create a national Bitcoin reserve, which could involve purchasing additional tokens or holding those seized in investigations. The New York Post reported that Trump is open to including U.S.-based tokens like XRP, Solana, and USDC in such a reserve.
XRP’s Evolving Role in Global Finance
XRP, which launched in 2012, was originally designed for low-cost foreign exchange transactions. In December 2024, Ripple expanded its offerings by launching RLUSD, a stablecoin available on both the XRP Ledger and Ethereum blockchains. According to Bitget CEO Gracy Chen, Ripple’s strategic moves have strengthened its position in the financial sector, driving demand for XRP. This is particularly relevant as the new MiCA regulation in Europe mandates exchanges to delist the USDT stablecoin, further supporting XRP’s growth.
Despite XRP’s impressive performance, the token still trades significantly below Bitcoin and Ethereum, with a market capitalization of over $190 billion. Bitcoin is valued near $100,000, while Ethereum sits around $3,300. However, XRP’s price volatility remains higher than that of Bitcoin, as seen with its four consecutive days of gains following a rough period in December.
Long-Term Belief in XRP’s Potential
Despite the volatility, many investors continue to hold onto their XRP, believing the asset will play a crucial role in the future of global finance. “There are a lot of ardent ‘HODLers’ who are ready to stomach short-term volatility,” said Savic. XRP’s market capitalization has more than doubled since the November election, and its loyal community remains confident in its long-term prospects.
As the crypto market evolves, all eyes are on XRP and its ability to maintain its momentum in the face of legal challenges and shifting regulatory landscapes.
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