Maxim Berg | Unsplash
The way political decisions can impact the cryptocurrency market is really interesting. We were closely following the Ripple case and the lawsuit initiated by the SEC. Looking at it from a historical context, Ripple Labs was sued in December 2020 for violating securities laws. At that time, the person in charge was President Jay Clayton, who was later succeeded by Gary Gensler in April 2021. The case has continued to progress from one administration to the next.
There is currently some optimism regarding XRP because Gary Gensler has announced his effective resignation for January 20. With this in mind, it is anticipated that the new administration will be much more flexible, potentially leading to the conclusion of the long-standing case, which has been a cause of concern for many investors.
I believe this will also influence how the next U.S. government addresses cryptocurrencies. They will certainly focus on Bitcoin, but it could also pave the way for new investment opportunities and a broader market opening up with fewer restrictions than currently seen. This could potentially lead to an XRP ETF in the future under a more flexible and less hostile regulatory framework than what has been in place.
However, Ripple needs to resolve the issue that is currently hindering its progress. Despite any optimistic market reactions, it could be short-lived, and what is sought after is sustained health and vitality with sustainable growth over time.
The news that made headlines today is that XRP has climbed to the third position in the market capitalization ranking, reaching an astonishing $138 billion with a price of $2.44 at this moment.
XRP Price | CoinGecko
It is incredible that XRP has surpassed Tether USDT. It's worth noting that XRP has previously surpassed Solana, which was seen as a potentially huge ecosystem that could lead in rankings. That, however, remains to be seen.
In the past 24 hours, XRP has surged by 27.3% and nearly 70% for the week. And looking at data from CoinGecko over the last 30 days, the increase is close to 370%, which is remarkable. Could this just be the beginning of something significant? It's hard to believe that a coin with such potential and freedom to grow will not continue expanding, so I think there are many more surprises to come, especially next year when many things come to fruition, and we observe how the market responds to new investments.
XRP as a payment system could be seen as competition for Tether. While the architecture is different within the crypto system, many people are utilizing this financial technology. However, one token is volatile while the other maintains a stable position, each serving different purposes. We mention this as they now compete for market capitalization and adoption.
Undoubtedly, more news will emerge as we approach the next year. What is truly tangible is the anticipation of a very positive change, sparking speculation about the future of Ripple Labs and its global expansion. Perhaps we will witness the resolution of the company's current issues and the emergence of a more competitive financial system to the market.
- Main image edited in Canva.
- I have consulted information at decrypt.co.
- Translated from Spanish to English with Hive Translator.
Posted Using InLeo Alpha