XRP has surged to the third spot in the cryptocurrency rankings by market capitalization, after adding over $30 billion in value over the past week.
As of press time on July 12, XRP’s market capitalization stood at $163.98 billion, up from $131.41 billion a week earlier, an increase of about $32.57 billion. Notably, XRP peaked at $171.88 billion on July 11.
This momentum has also lifted XRP’s price, which is now testing the $3 resistance zone. At the time of writing, the token was trading at $2.77, up nearly 25% over the last seven days and more than 7% on the daily chart.
Why XRP is rallying
XRP’s rally has been fueled by its ability to track broader market sentiment, which has seen Bitcoin (BTC) hit a new all-time high above $118,000. Technically, XRP’s break above the $2.30 resistance level helped unlock further capital inflows.
At the same time, on-chain data from analytics platform Santiment shared on July 11 shows that with XRP approaching $3, market interest has picked up notably. For example, 6,939 new XRP wallets were created in a single day, the highest daily figure since March 1.
Additionally, social media activity has also spiked, with XRP now featuring in over 5.5% of all cryptocurrency-related discussions, a level last seen on March 18.
XRP fundamentals
Beyond technical drivers, institutional developments have buoyed sentiment. For instance, Ripple’s stablecoin, RLUSD, is seeing increased adoption in cross-border remittances, highlighted by Visa’s partnership with Yellow Card to facilitate settlements in Africa.
In addition, XRP’s momentum has been supported by growing anticipation of a potential resolution in the long-running legal battle between Ripple and the Securities Exchange Commission (SEC), with signs the two parties are moving closer to a settlement.
Speculation around the possible approval of an XRP spot exchange-traded fund (ETF) has further fueled interest, as institutional investors eye the asset’s potential.
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