Cryptocurrency XRP has hit a new all-time high at US$3.65, surpassing its January 2018 peak price of US$3.40.
XRP, the third largest cryptocurrency and the native token of the XRP Ledger, surged 14% on Thursday, topping US$200 billion in market capitalization.
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Behind this impressive rally lies a major political signal. Cointribune reported that on the same day as XRP’s peak, U.S. President Donald Trump signed the Genius Act, a major legislative text aimed at providing a clear and favorable framework for the crypto ecosystem, particularly the stablecoin market, valued at $250 billion.
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act is the first significant crypto bill in the United States, for the regulations of stablecoin issuers. Stablecoins is currently dominated by Tether’s USDT and Circle’s USDC but which has drawn a high level of attention from traditional financial institutions, including Wall Street banks.
Another piece of legislature still in the US Congress is the Clarity Act which will oversee the structure of crypto markets.
XRP price has surged by 70% in the last 30 days, according to data published by CryptoRank.
Beyond the price, other indicators confirm the market excitement around XRP. Activity in derivatives products has exploded, reflecting the enthusiasm of professional investors and traders. Key points to note include:
- Open interest at $10 billion on XRP derivatives, a historic peak illustrating the rise of open positions;
- An increase in intraday volatility, fueled by rapidly growing trading volumes;
- A speculative climate driven by a series of optimistic posts on social networks, especially regarding Ripple and its regulatory environment;
- The end of a long stagnation phase: XRP hadn’t reached such levels for more than seven years, notably due to its legal battle against the SEC.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
