Ripple’s XRP has been making waves in the cryptocurrency market, recently crossing the significant $1 threshold for the first time since November 2021. This comes at a time when the crypto market is experiencing volatility, but XRP stands out as one of the top performers.
As of today November 16, 2024, the token has surged by an impressive 25% in just 24 hours, drawing attention from investors and analysts alike.
XRP vs. Dogecoin: The Race to $1
XRP’s latest price jump isn’t just about surpassing the $1 mark, it also puts it ahead of Dogecoin in the race to reach this milestone. Dogecoin, which has seen impressive gains over the past week (up 80%), is still far from the $1 target.
As of today, Dogecoin’s price stands at $0.373, far below its 2021 peak of $0.7376. Reaching $1 would require a massive influx of capital, raising Dogecoin’s market cap by nearly five times its current value.
While Dogecoin’s past rallies—especially its astronomical 30,700% surge in 2021—have made it a popular cryptocurrency, its volatility makes such a feat less likely in the short term. Crypto expert Ali Martinez notes that although Dogecoin has proven its ability to make explosive gains, it’s also shown a pattern of sharp declines. This makes the journey to $1 an uphill battle, despite its $30 billion market cap and large circulating supply of 144 billion DOGE tokens.
On the other hand, XRP’s price surge to $1 marks a significant turning point. This is the first time since November 2021 that XRP has broken past the $1 threshold, signaling a recovery after facing several years of regulatory challenges and uncertainty. Its rise in recent days—almost 26% in just 24 hours—shows a growing investor confidence in XRP as it rebounds from a long-running legal battle with the SEC.
What’s Behind XRP’s Surge?
So, what’s driving XRP’s rally? The primary catalyst seems to be Ripple’s resolution of its legal issues with the U.S. Securities and Exchange Commission (SEC). After settling the lawsuit with a $125 million fine, Ripple can now focus on expanding its business without the constant legal cloud hanging over its head. This settlement has cleared the path for investor confidence to return to XRP, with many feeling more comfortable with the token’s prospects.
Another factor driving XRP’s growth is its established role in the cross-border payments market. XRP has long been a go-to choice for fast and low-cost international money transfers, and its utility in this space only continues to strengthen. With clearer regulatory frameworks emerging, especially in regions like the UAE, Ripple’s position in the financial world is becoming more secure. If global regulations continue to evolve in a favorable direction, XRP could see even more widespread adoption.
Can XRP Overtake Ethereum?
With XRP’s rapid growth, many are now speculating whether it could eventually challenge Ethereum for the second spot in the crypto rankings. Currently, Ethereum holds a strong second place with a market cap of around $380 billion, while XRP sits much further down at $62 billion. However, XRP’s recent price surge and Ripple’s expanding global presence are beginning to raise eyebrows in the industry.
Crypto analysts, like Dark Defender, point to several key factors that could help XRP close the gap with Ethereum. Ripple has been expanding its reach, especially in emerging markets like Central Bank Digital Currencies (CBDCs), and has even gained approval to expand its operations in the UAE. Furthermore, Ripple is considering launching a Dirham-backed stablecoin in the region, which could increase XRP’s usage in cross-border trade and bolster its market position.
Additionally, if the U.S. becomes more crypto-friendly, particularly under a potential Trump administration, XRP might see a boost. However, overtaking Ethereum is no easy feat. Ethereum remains dominant in the decentralized finance (DeFi) and smart contract sectors, which makes its position in the top three secure for the time being.
What to Expect with XRP
While XRP’s potential to challenge Ethereum is certainly plausible, it’s important to note that this won’t happen overnight. Ethereum’s position is fortified by its massive ecosystem, which includes DeFi platforms, NFTs, and smart contracts. XRP will need to continue innovating, increasing adoption, and maintaining positive market sentiment to close the distance.
Ripple’s involvement in CBDCs and its plans to expand into new markets are certainly promising, but the cryptocurrency landscape is ever-changing, and many hurdles remain. XRP’s ability to sustain its momentum will depend on several factors, including the continued regulatory clarity in major markets and broader market conditions.
XRP’s recent surge to $1 is an important milestone, marking its recovery and growing confidence among investors. While it may not overtake Ethereum just yet, Ripple’s advancements in the financial sector and the possibility of favorable regulatory changes could make it a serious contender for the second spot in the cryptocurrency rankings. The coming months will likely provide more clues as to whether XRP’s rally has the staying power to challenge Ethereum’s dominance in 2024 and beyond.
