XRP recently overtook Tether (USDT) in market capitalization to become the third largest cryptocurrency behind Bitcoin and Ethereum. As of December 1, 2024, XRP’s market cap was $141.8 billion, surpassing USDT’s $134.5 billion. The price of XRP rose 30% in 24 hours to $2.46 and has seen a 364% increase over the last month. This marked a significant shift as XRP overtook Solana in market cap over the weekend.

Several factors contributed to XRP’s rise, most notably Ripple’s ongoing battle with the SEC and the possible approval of its RLUSD stablecoin by the New York Department of Financial Services (NYDFS). Sources suggest that the NYDFS could approve the stablecoin on December 4th, allowing Ripple to launch RLUSD and integrate it into its RippleNet payment system. This is expected to strengthen Ripple’s position in cross-border payments and potentially provide more stability for XRP.

Another factor is the expected change in leadership in the SEC. Gary Gensler, the current chairman, has announced plans to step down in January 2025, raising hopes that new SEC leadership could take a friendlier stance toward Ripple. The SEC lawsuit against Ripple, which began in December 2020, presented a significant hurdle for XRP, but many believe new leadership could lead to a more favorable outcome, such as a settlement or dismissal of the case.

XRP has gained momentum since its all-time high of $3.40 in January 2018, but remains about 27.6% below that peak. Despite the recent rise, some analysts warn that it could be short-lived and advise caution for new buyers entering the market. However, the possible regulatory changes and Ripple’s plans for its RLUSD stablecoin have renewed investor confidence in the future of XRP.

In addition to the RLUSD project, Ripple is also working on launching exchange-traded funds (ETFs) for XRP, which could open the door to traditional investors. Although no XRP ETFs have been approved yet, several asset managers have applied for approval and the market is awaiting a regulatory decision.

Ripple’s rise and increasing support for XRP through both regulatory changes and its growing ecosystem suggest a promising future for the cryptocurrency. As Ripple continues to develop its stablecoins and other financial products, XRP’s market position is expected to strengthen, although its future remains dependent on the outcome of ongoing legal and regulatory developments.