Ripple’s XRP Surges 240% Amid Trump Election, Regulatory Shifts

Ripple‘s native cryptocurrency, XRP, has surged approximately 240% year-to-date, driven by optimism surrounding Donald Trump‘s presidential election victory and expectations of a more favorable regulatory environment for digital assets. With a market capitalization of $121 billion, XRP has created significant wealth for its early investors, positioning itself as a key player in the global payments industry.

Ripple, a blockchain-based network designed to facilitate international money transfers, uses XRP as a bridge currency to enable fast and cost-effective cross-border transactions. According to McKinsey analysts, the global payments market represents a $2.4 trillion revenue opportunity, projected to grow to $3.1 trillion by 2028. Ripple’s technology, which processes transactions in seconds at a fraction of the cost of traditional methods like SWIFT, positions it as a potential disruptor in this space.

However, Ripple and XRP have faced significant regulatory challenges. In August, Ripple Labs, the platform’s developer, was fined $125 million by the U.S. Securities and Exchange Commission (SEC) for selling XRP tokens as unregistered securities. Despite this, the ruling provided clarity by distinguishing between institutional sales (classified as securities) and secondary market sales to retail investors (not classified as securities).

The election of Donald Trump has further fueled optimism for XRP. Trump’s pick for SEC chair, Paul Atkins, is seen as more crypto-friendly than his predecessor, Gary Gensler, who prioritized aggressive oversight. Ripple CEO Brad Garlinghouse has expressed confidence that the new administration will end years of regulatory uncertainty and open up domestic opportunities for the company.

Since Trump’s election, XRP’s price has surged over 300%, outpacing other major cryptocurrencies. Technical analysts suggest that XRP could see a 40% increase if it breaks out of its current descending triangle pattern. Social sentiment metrics also indicate heightened optimism for XRP, surpassing that of Bitcoin and Ethereum.

Ripple Labs has reported a surge in U.S. business deals in the final weeks of 2024, attributing this to the “Trump effect.” Additionally, Ripple President Monica Long hinted at the possibility of an XRP exchange-traded fund (ETF) amid expectations of more favorable crypto regulations under the new administration.

While the future looks promising for XRP, its valuation remains challenging due to the lack of traditional financial metrics like revenue or earnings. After a significant price surge in 2024, some analysts caution that much of the expected growth may already be priced in, advising long-term investors to wait for the hype to subside before entering the market.