XRP has surged to a new local high of $2.96, marking a 31.5% increase since the start of the year.

The cryptocurrency’s market cap has climbed to $169.3 billion, securing its place as the third largest cryptocurrency, surpassing Tether (USDT) and even BlackRock, the world’s largest asset manager.

According to CoinGecko, XRP’s total 24-hour trading volume reached an impressive $183.9 billion, with Upbit leading the charge, contributing $24.13 billion (13.12%). Other key exchanges included Binance ($23.31 billion), Bithumb ($7.87 billion), and Bybit ($7 billion).

Market Drivers Behind XRP’s Rally

1. Institutional and Retail Interest

XRP’s recent price surge can be attributed to a confluence of factors, including Ripple Labs’ growing list of key partnerships and the launch of RLUSD, Ripple’s stablecoin. Additionally, speculation surrounding the potential approval of a spot XRP ETF has added fuel to the rally.

JP Morgan projects that XRP ETFs could attract $4 billion to $8 billion in new assets within five months of approval, significantly boosting market activity.

2. Pro-Crypto Developments from Trump Administration

XRP’s momentum has been further amplified by the anticipation of Donald Trump’s second inauguration on January 20, 2025. Trump’s pro-crypto policies, including possible executive orders supporting digital assets, have lifted broader market sentiment.

Adding to XRP’s tailwinds is the expected resignation of SEC Chair Gary Gensler, who has been criticized for his stringent stance on cryptocurrencies. Gensler’s tenure included Ripple’s legal battle with the SEC, which concluded in August 2024 with a $125 million penalty.

XRP Outpaces BlackRock and Disney in Market Cap

Ripple’s XRP achieved a historic milestone by surpassing BlackRock’s market cap of $149 billion, as well as entertainment giant Disney, which trails by $2 billion. XRP’s market cap rose by 6.7% in the past 24 hours, reflecting the asset’s growing prominence among institutional and retail investors alike.

XRP’s Future Price Targets

Analysts remain optimistic about XRP’s trajectory:

• Pseudonymous analyst BitBelleza forecasts XRP reaching $4–$5 in the short term, with potential to hit $27 by year-end, driven by SEC clarity and ETF approval.
• Crypto Jebb, a prominent analyst, sets more moderate targets, predicting XRP will rally to $5.30–$8.70 in 2025.

Despite its current strength, analysts caution that retail participation remains relatively low, leaving room for more significant inflows as broader market sentiment improves.