XRP’s market cap also climbed to $176 billion, surpassing major players like BlackRock and Tether. Analysts now project ambitious price targets for the altcoin, with some expecting double-digit levels by year-end. Meanwhile, the SEC reignited its legal battle with Ripple by appealing the 2023 ruling on XRP's classification, though many believe the case may lose traction under the incoming administration.
XRP Edges Closer to All-Time High
XRP has had a strong start to 2025 so far and reached $3.06 recently, which was the first time the altcoin achieved this milestone since 2018. This rally forms part of its 41% increase over the past 15 days, and made XRP the best-performing asset among the top ten cryptocurrencies.
XRP’s price action over the past week (Source: CoinMarketCap)
The surge in XRP’s popularity is also very evident in its dominance over Bitcoin on Google Trends. On Jan. 15, global search interest for XRP surpassed Bitcoin. This was the third time in the past year that XRP led Bitcoin in search volume after something similar happened in November of 2024. To add even more fuel to XRP’s fire, technical analysis revealed that the XRP/BTC trading pair recently broke through an 8-year descending resistance line, signaling increasing strength against Bitcoin.
The XRP community has also grown quite a bit as close to 58,000 new holders joined in 2025. Analysts attribute XRP's recent rally mainly to demand from spot investors rather than derivatives markets.
Unlike Bitcoin and Ethereum, whose bull runs were fueled by high futures open interest, XRP's $3 milestone was driven by sustained buying pressure from spot holders. An order flow analyst pointed out that XRP’s funding rates and spot buy premiums remained stable despite the sharp price increase, which indicates strong organic demand.
The broader crypto community speculates that XRP could even challenge Ethereum’s position as the second-largest cryptocurrency by market cap. A continued rally at its current pace could potentially allow XRP to surpass Ethereum with a 2.5X price increase.
Some people also argue that XRP’s positive regulatory outlook, supported by the incoming pro-crypto Trump administration, makes it a stronger investment than Ethereum, despite Ethereum’s more robust fundamentals. Overall, XRP’s latest achievements and growing community support could set the stage for even more gains in the weeks ahead.
XRP Surpasses BlackRock in Market Cap
Thanks to its very impressive price performance, XRP reached a market cap of more than $176 billion, placing it behind only Bitcoin and Ethereum. This milestone also pushed XRP ahead of Tether USDT, which now holds the fourth position with a valuation of $137 billion.
Additionally, XRP made headlines by surpassing the market cap of BlackRock, the world’s largest asset manager, whose valuation currently stands at $149 billion. XRP also overtook entertainment giant Disney’s market cap.
One of the factors behind XRP’s meteoric rise is the anticipation surrounding Donald Trump’s upcoming inauguration on Jan. 20. Trump’s victory in the November 2024 US presidential election bolstered expectations of pro-crypto policies. This provided a much needed boost to market sentiment. Reports suggest the incoming administration may issue executive orders in support of the cryptocurrency industry.
Adding to the bullish sentiment is the anticipated resignation of SEC Chair Gary Gensler, who has been a very controversial figure in the crypto space. Gensler’s tenure was riddled with stringent regulatory actions, including a very impactful ruling against Ripple in 2024.
His departure is expected to be the start of a much more favorable regulatory environment, with XRP being one of the primary beneficiaries. Speculation surrounding the approval of a spot XRP exchange-traded fund (ETF) also increased excitement. Analysts at JP Morgan project that these ETFs could attract between $4 billion and $8 billion in new assets within the first five months of launch.
Additionally, the bullish outlook for XRP sparked ambitious price predictions. Pseudonymous analyst BitBelleza believes that strong momentum, clarity at the SEC, the RLUSD launch, and potential ETF approvals could push XRP to $4 or $5 in the short term and as high as $27 by the end of 2025.
Fellow analyst Crypto Jebb set a more conservative target by predicting a price range of $5.30 to $8.70 during the current cycle. With XRP approaching its all-time high of $3.30 and gaining some serious traction, many market participants are very optimistic about the cryptocurrency’s potential to achieve double-digit prices by the end of 2025.
XRP Ledger Positioned for Tokenization Boom
Ripple President Monica Long recently pointed out the growing adoption of tokenization offerings by banks. Long shared that 15 of the 25 largest banks worldwide have already piloted tokenized asset projects, which she believes signals a shift toward mainstream adoption of crypto solutions.
Her comments were made in response to industry personality Frank Chaparro, who identified crypto custody as a key barrier preventing banks from expanding their involvement in the industry. Long agreed with this assessment, and added that market-ready offerings could become a reality in the US by 2025, provided that the next administration delivers regulatory clarity for the crypto sector.
The appointment of David Sacks as Crypto Czar sparked a lot of optimism about forthcoming policy changes. While not explicitly mentioned, Long’s comments suggest Ripple Labs and the XRP Ledger are very well-positioned to capitalize on this momentum.
Central to this effort is Ripple’s RLUSD stablecoin, which was launched in December. It is designed to boost liquidity and power real-world adoption, and has already achieved impressive milestones on major exchanges as well as expanded its presence in regions like Singapore through Independent Reserve.
Ripple sees RLUSD as a critical tool when it comes to facilitating banks’ transition to crypto products and positioning the company as a leader in the tokenization movement.
SEC Appeals Ruling Over XRP Classification
Meanwhile, the US SEC filed an appeal against a federal court ruling in its case against Ripple Labs, reigniting the legal battle over XRP. In a Jan. 15 filing with the Second Circuit Appeals Court, the SEC argued that the New York District Court erred in its July 2023 decision which found that XRP sales to retail investors were not unregistered securities offerings. The agency is seeking to overturn the ruling, which it partially lost, and to have XRP sales to retail investors and its use in employee compensation and business deals classified as securities.
The appeal was filed after Judge Analisa Torres’ earlier ruling that XRP was a security when sold to institutional investors but not to retail investors, as retail buyers on exchanges did not know who was selling the token. The SEC holds firm that Ripple’s promotional efforts created an expectation of profit for XRP buyers, which makes it an investment contract under the Howey test.
Ripple, however, is still very confident in its defense, and CEO Brad Garlinghouse even called the SEC’s arguments repetitive and ineffective. Chief Legal Officer Stuart Alderoty described the filing as a rehash of failed arguments likely to be abandoned by the next administration.
The case could face some delays, with Ripple preparing counterarguments and the possibility of oral hearings before a decision is reached. Pro-crypto lawyer Jeremy Hogan also criticized the SEC’s appeal brief, and stated that it lacked substance and failed to provide evidence that XRP retail buyers were influenced by Ripple’s promises. Hogan suggested that the case might be shelved under the incoming Trump administration, which could halt SEC litigation on non-fraud cases.
