XRP surged more than 41% against the U.S. dollar over the past day, reaching $2.77 per coin as of 11:20 a.m. ET on Dec. 2, 2024. The overall gain stands at a staggering 431% from recent lows. With a market capitalization of approximately $154 billion, XRP has officially become the third-largest cryptocurrency by market value, trailing only Bitcoin (BTC) and Ethereum (ETH), and surpassing BNB and Solana.
Trading Volume and Derivatives Frenzy
The rally was accompanied by exceptional trading activity. XRP recorded $44 billion in global transactions over the last 24 hours, ranking third in volume after Tether (USDT) and Bitcoin (BTC). Notably, the Korean won (KRW) contributed to more than 26% of XRP swaps, highlighting strong Asian demand. In derivatives markets, XRP triggered $84 million out of the day's total $588.66 million in liquidations. Short positions lost $55 million, while long positions saw $29 million in forced closures, reflecting intense speculative activity.
At its current price of $2.77, XRP is now just 19% below its all-time high of $3.40, achieved on Jan. 7, 2018, nearly seven years ago. The rapid ascent has drawn comparisons to the 2017-2018 bull run that propelled XRP to its peak.
Regulatory and Market Outlook
The price surge is partly attributed to renewed optimism regarding the U.S. Securities and Exchange Commission’s (SEC) stance on XRP. Recent court rulings favorable to Ripple have fueled expectations of regulatory leniency. However, analysts caution that the high leverage and 24-hour volatility present significant risks. XRP's open interest and funding rates remain elevated, suggesting that any reversal could trigger cascading liquidations. While the rally showcases renewed bullish sentiment, investors are advised to exercise caution given the historical volatility of XRP.