XRP Regains Position as Third-Largest Cryptocurrency by Market Cap
XRP has recently surged above Binance Coin (BNB), reclaiming its status as the third-largest cryptocurrency in terms of market capitalization. This shift in rankings underscores the impact of short-term buying momentum that has driven XRP’s ascent.
Current Market Performance
As of the latest reports, XRP’s market capitalization has reached approximately $158 billion, overtaking BNB’s $156 billion. XRP is trading at $2.63, reflecting a 3.43% increase over the past 24 hours and a significant 12.8% rise over the past week. This positions XRP as one of the top performers among major digital currencies.
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Conversely, Binance Coin (BNB) is trading at $1,123.71, showing a modest 0.55% gain in the last 24 hours and a 4.35% increase over the week.
Factors Behind XRP’s Rally
Several strategic developments have fueled the recent surge in XRP’s value. Notably, interest has been spurred by initiatives linked to Ripple and the introduction of the Evernorth digital asset treasury (DAT). Ripple’s co-founder, Chris Larsen, has played a pivotal role by selling a portion of his XRP holdings to support Evernorth. The aim is to amass over $1 billion via a SPAC merger to acquire and hold XRP on a large scale. Rather than a sell-off, this move is intended to enhance demand over the long term and tighten supply.
Supported by Japan’s SBI Group, Evernorth may also engage in on-chain lending and liquidity provisioning, amplifying its influence on the XRP Ledger. Ripple’s ongoing efforts to broaden XRP’s usage in payments, stablecoins, and institutional services further contribute to a bullish environment for the token, enhancing its attractiveness despite recent market fluctuations.
XRP Price Prediction and Market Sentiment
The recent rally in XRP defies the prevalent fear, uncertainty, and doubt (FUD) observed across social media platforms. Data from Santiment indicates that smaller wallets are selling off, resulting in a nine-month low in market sentiment. The buzz around Larsen’s $120 million XRP sale has intensified investor apprehension.
However, Santiment’s analysis suggests a contrarian opportunity, as retail investors anticipate a drop below $2, while institutions continue accumulating. At levels exceeding $3, a “sell” signal emerges. Historical trends indicate that retail-driven FUD often precedes significant rallies in XRP, with recent whale activity involving the sale of just 70 million XRP against a robust $144 billion market cap.
Looking ahead, pending decisions on a spot XRP ETF, combined with Ripple’s RLUSD stablecoin approaching the $1 billion mark, have led to institutional inflows of $73.88 million last week. Analysts project XRP could climb to $2.80 by the end of the month if current levels hold, potentially reaching $3.50 by year-end.
