- Ripple’s XRP and Stellar Lumens (XLM) have surged significantly in a New Year altcoin rally, with XRP reaching $2.44 and XLM climbing 28% to $0.456.
- While altcoins gain momentum, Bitcoin’s dominance has decreased, signaling a potential capital shift towards altcoins in early 2025.
As the cryptocurrency market enters 2025, altcoins are stealing the spotlight, leaving Bitcoin to play catch-up. Among the top performers are Ripple’s XRP and Stellar Lumens (XLM), which are spearheading a New Year altcoin rally that has traders and enthusiasts buzzing with excitement.
Ripple’s XRP Soars
Ripple’s cross-border payment token, XRP, has surged nearly 15% in the past 24 hours, hitting an intraday high of $2.44 during early trading on January 2. This marks the token’s highest level since mid-December, showing renewed momentum after a turbulent end to 2024.
XRP had reached a seven-year high of over $2.90 in early December but dropped to $2 by the month’s close. Ripple CEO Brad Garlinghouse attributes the recent surge to “momentum and increased focus on real-world utility,” setting a promising tone for the token in 2025.
Adding intrigue, community member ‘Jack the Rippler’ highlighted that Ripple released 500 million XRP from escrow on New Year’s Day, accompanied by a cryptic memo stating, “January 20 is around the corner.” Speculation is rife about potential collaborations with the incoming Trump administration, fueling further market excitement.
Stellar Lumens Follows Suit
XRP’s sibling token, Stellar Lumens (XLM), has also enjoyed impressive gains, climbing 28% to an intraday high of $0.456 during Thursday morning trading in Asia. Like XRP, XLM has a history of mirroring its counterpart’s momentum.
Although Stellar spiked to over $0.60 in late November, it remains significantly below its 2018 all-time high. Still, the recent rally is a positive sign for the token as it capitalizes on the growing altcoin trend.
Altcoins on the Rise
Other notable altcoin gainers include Cardano (ADA), which jumped 10% to $0.95, marking its highest price in two weeks. Avalanche (AVAX), Chainlink (LINK), and Hedera (HBAR) are also showing strength, signaling a broader altcoin rally.
Bitcoin Takes a Backseat
While altcoins soar, Bitcoin’s performance remains subdued. The leading cryptocurrency gained a modest 1.3% over the past day, reaching $95,000. BTC’s dominance has dipped to 57.44%, down 7% from its November peak of nearly 62%. Analysts suggest this could signal a capital rotation from Bitcoin to altcoins, potentially sustaining the altcoin rally into the first quarter of 2025.
A Promising Start to 2025
With payment tokens like XRP and XLM leading the charge and other altcoins joining the rally, the cryptocurrency market is off to a dynamic start in 2025. As speculation and momentum build, investors are eagerly watching to see if this altcoin surge will continue shaping the narrative for the year ahead.
