How Ripple Defied the Odds and Reclaimed Its Crown?

The election of Donald Trump has sent shockwaves through the crypto world, with XRP riding the crest of this wave. "Trump's pro-business stance could be a game-changer for crypto regulation," says Jake Chervinsky, a prominent crypto policy expert. Ripple, XRP's parent company, isn't leaving anything to chance. Their $45 million donation to PACs ahead of the 2024 elections speaks volumes about their lobbying muscle. "It's a clear signal that Ripple is playing the long game," Chervinsky adds.

Ripple CEO Brad Garlinghouse has been vocal about the potential changes under Trump's leadership. In a recent interview with Fox Business, Garlinghouse hinted at productive discussions with the incoming administration, fueling speculation about a more crypto-friendly regulatory environment.

The formation of Trump's cryptocurrency advisory committee has sparked fierce competition among crypto firms for influential positions. Circle, Ripple, Kraken, Coinbase, a16z, and Paradigm are all vying for a seat at the table, potentially reshaping the regulatory landscape for digital assets.

Ripple's strategic playbook is turning heads on Wall Street. The imminent launch of RLUSD, their U.S. dollar stablecoin, is more than just another entry in the crowded stablecoin market. "RLUSD could be the bridge between traditional finance and crypto that we've been waiting for," opines Sarah Brennan, a fintech analyst at Jefferies.

In a move reminiscent of a corporate stock buyback, Ripple's decision to lock up 10 billion XRP tokens has sent a strong signal to the market. Tom Lee of Fundstrat Global Advisors notes, "This isn't just about controlling supply; it's about Ripple putting its money where its mouth is."

The company's expansion doesn't stop there. Recent partnerships with Archax and ABRDN PLC aim to launch the first tokenized money market fund on the XRP Ledger, showcasing Ripple's ambition to penetrate traditional finance. Additionally, collaborations with MoonPay and a host of other exchanges are expanding XRP's accessibility and liquidity globally.

The ongoing SEC saga, once a millstone around XRP's neck, is showing signs of turning in Ripple's favor. Recent court rulings have injected a dose of optimism into the market. Joseph Hall, a former SEC official, observes, "If Ripple secures a favorable outcome, it could set a precedent for the entire crypto industry."

With the SEC's brief due by January 15, 2025, and rumors of current SEC Chair Gary Gensler's potential resignation, the legal landscape appears to be shifting in Ripple's favor. The timing couldn't be more critical, as it aligns with Trump's potential first day in office on January 21, 2025.

Former CFTC Chairman Chris Giancarlo's recent comments suggesting that XRP should be classified as a commodity rather than a security have added fuel to the bullish sentiment. This perspective could significantly influence ongoing legal proceedings and future regulatory approaches.

XRP's trading volumes have skyrocketed, recently topping an eye-watering $25 billion in a single day. "We're seeing institutional money start to flow in," reports Lisa Ellis, a partner at MoffettNathanson. The prospect of XRP-based ETFs is particularly tantalizing for traditional investors looking to dip their toes into crypto waters.

WisdomTree's registration of an XRP ETF in Delaware has set off a domino effect, with Bitwise, Canary, and 21Shares following suit. Nate Geraci, President of The ETF Store, notes, "The race for XRP ETFs is heating up, and I wouldn't be surprised to see more issuers join the fray."

Grayscale's decision to open its XRP Trust to accredited investors has further legitimized XRP in institutional circles. The trust's value has surged.

XRP's dramatic resurgence to reclaim its position as the third-largest cryptocurrency by market capitalization marks a pivotal moment in the digital currency landscape. This comeback, fueled by a confluence of favorable macroeconomic shifts and proactive regulatory engagements, underscores Ripple's strategic acumen and the market's dynamic nature. Industry analysts attribute XRP's revival to multiple factors, including an improving economic environment and Ripple's ongoing dialogue with regulators, which has significantly bolstered institutional interest. With daily trading volumes surpassing $1 billion—a 200% increase since the year's start—and notable hedge funds incorporating XRP into their portfolios, the cryptocurrency's renewed vigor is palpable. Ripple's introduction of the RLUSD stablecoin and implementation of a token lockup program have further cemented investor confidence. As the regulatory framework for cryptocurrencies continues to evolve, XRP stands poised to play an increasingly significant role in digital finance, though analysts caution investors to remain mindful of short-term volatility and advocate for diversified strategies.