Ripple Labs’ XRP is trading at a three-year high due to the broader cryptocurrency market benefiting from anticipated political tailwinds in the US. Despite shedding 16% of its value from a Saturday peak of $1.20, XRP is still up more than 80% on the week to $1.06. The coin has been on an upward trajectory since President-elect Donald Trump secured victory in the US presidential election.
This has buoyed investor interest in multiple cryptocurrencies, including meme coins, which continue to lead the market rally in terms of total performance alongside relative gains for large-cap coins. Open interest for the world’s sixth-largest crypto has spiked to record heights just below $2 billion, with the recent spike in XRP futures open interest to record levels signifying a rise in trader interest.
With speculation that SEC Chair Gary Gensler may step down shortly following Trump’s inauguration, Ripple and XRP may have a clearer runway to regain market confidence and expand its use case without the overhang of regulatory uncertainty. Trump has stated his intent to “fire Gary Gensler on day one,” referring to the SEC chairman who spearheaded the agency’s aggressive approach to crypto regulation.
This has boosted trader sentiment, and with Bitwise having previously filed for an XRP ETF, some are connecting these developments in hopes of capturing potential upside.