XRP Reclaims Its Place Among Top Cryptocurrencies, Overtaking Solana

XRP has surged past Solana (SOL) to secure its position as the fourth-largest cryptocurrency by market capitalization, fueled by a striking value increase throughout November. At present, XRP boasts a market capitalization exceeding $122 billion, comfortably eclipsing Solana’s $113 billion.

Once a heavyweight in the crypto sphere, XRP ranked as the third-largest cryptocurrency by market cap—behind Bitcoin and Ethereum—before its dramatic fall from grace in December 2020. That downturn was triggered by a lawsuit from the U.S. Securities and Exchange Commission (SEC), accusing Ripple Labs of selling XRP as an unregistered security. The legal clash led to widespread uncertainty among investors, delistings from major exchanges, and a steep plunge in XRP’s valuation. Industry giants like Coinbase suspended XRP trading, relegating it to the seventh spot in the market cap rankings for years.

The tide began to turn in July 2023 when a partial legal victory clarified XRP’s regulatory status. A landmark ruling concluded that XRP is not a security in certain contexts, sparking renewed investor confidence. This pivotal decision ignited a rally in XRP’s value and a corresponding climb in its market capitalization.

Political developments have further fueled optimism for XRP. The re-election of Donald Trump and the impending resignation of SEC Chair Gary Gensler have sent bullish ripples through the market. Following Trump’s electoral win, XRP’s price skyrocketed as investors predicted a more favorable regulatory climate for digital assets under the new administration. Gensler, whose tenure has been marked by aggressive enforcement tactics toward the crypto sector, is set to step down on January 20, 2025, aligning with Trump’s inauguration. Speculation is rife that his successor may adopt a more crypto-friendly stance, potentially easing regulatory burdens for XRP and its peers.

Ripple’s CEO, Brad Garlinghouse, has also expressed enthusiasm for Trump’s nomination of Scott Bessent as Treasury Secretary, labeling him the “most pro-innovation, pro-crypto Treasury Secretary in history.” This strategic shift in regulatory leadership, coupled with hopes that the SEC might abandon its lawsuit against Ripple, has strengthened investor confidence. The resurgence of XRP underscores a broader market sentiment that digital assets could soon operate in a less restrictive regulatory landscape.

In contrast, Solana has experienced a slight pullback, trading at $236.21 at the time of writing. XRP’s dramatic ascent highlights its resilience and the potential for seismic shifts in the crypto market, driven by evolving legal and political dynamics.