The recent XRP price surge has been attributed to several key factors, pushing the asset to multi-year highs. The analysis highlights three primary reasons for XRP’s meteoric rise, drawing attention from investors and market spectators alike.
Impact of Gary Gensler’s Planned Resignation
The announcement of SEC Chair Gary Gensler’s planned resignation in January 2025 has significantly contributed to XRP’s rise. Shortly after this news, the XRP Ledger (XRPL) native token broke past a three-year price high of $1.40.
Ripple’s CEO, Brad Garlinghouse, has linked this development to XRP’s resurgence. In a tweet, Garlinghouse commented that Gensler’s resignation might allow the broader crypto market to flourish, saying, “After Gensler, all boats rise.”
Ripple’s Chief Legal Officer, Stuart Alderoty, shared a similar sentiment. After XRP’s market cap exceeded $150 billion, Alderoty suggested that the SEC’s actions were the main factor behind prolonged price suppression in the crypto market.
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Korean Market Driving XRP Trading Volume
Another factor influencing XRP’s growth is the massive trading activity from South Korean exchanges. Data from on-chain analytics firm Scopescan has identified Upbit as a key player in driving XRP liquidity.
On the Upbit XRP/KRW spot pair, trading volume reached $3.8 billion within 24 hours, accounting for nearly 30% of the exchange’s total volume. This activity surpassed Bitcoin’s trading volume on the same platform by 11 times.
Similarly, Bithumb, another major Korean exchange, reported $1.12 billion in XRP trading volume, comprising 32% of its total trades.
Global exchanges also witnessed an uptick in XRP trading activity. For example, on Coinbase, XRP trading accounted for 22.29% of its 24-hour volume, exceeding Bitcoin’s volume by more than threefold.
Whale Accumulation on Coinbase
XRP’s price surge has also been fueled by massive whale accumulation on Coinbase. CryptoQuant CEO Ki Young Ju highlighted this trend, pointing to XRP whale buying pressure as a major catalyst.
Over the past 30 days, the Coinbase XRP Premium, a metric indicating buying pressure, has fluctuated between 3% and 13%. This suggests that the majority of the recent XRP accumulation occurred on Coinbase.
In contrast, Upbit’s premium has remained negligible, supporting the conclusion that Coinbase whales have driven XRP’s price rally.
Current XRP Price Performance
XRP is trading at $2.62, reflecting an 8% increase in the past 24 hours. The token has seen a 400% surge over the past month, surpassing its previous cycle’s price peak.
Thoughts on XRP’s Growth
Regulatory shifts, heightened activity from the Korean market, and substantial whale accumulation have propelled XRP to new heights. Ripple’s leadership continues to advocate for transparency and growth, while market dynamics point to sustained interest in the asset.
