The cryptocurrency market witnessed notable price increases following the announcement of U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler’s upcoming resignation. XRP, XLM, and ADA lead market gains, driving a surge in cryptocurrency prices. The market shift comes as investors anticipate a more crypto-friendly regulatory environment under new leadership.
Ripple’s XRP surged 20% in 24 hours, reaching $1.44 and a market cap of $82 billion—levels last seen in April 2021, according to CoinGecko. Ripple Labs, the fintech company behind XRP, faced a legal battle with the SEC since 2020, which concluded with a settlement in August 2024.
Market analysts attribute XRP’s jump to optimism around regulatory changes. Max Sellers, a sales executive at CCData, noted the anticipated shift in leadership as a catalyst for price action. XRP’s increased accessibility on platforms like Robinhood and Coinbase further supported its rise, with $2.4 billion in trading volume on Binance and $1.1 billion on Coinbase within a day.
Stellar Lumens (XLM) Soars
Stellar Lumens (XLM) climbed 32% in 24 hours to $0.33, marking a three-year high. Its market cap reached $9.9 billion. As a decentralized payment platform, Stellar facilitates cross-border transactions, promoting financial inclusion. Its surge aligns with increased retail investor activity, evident from rising app downloads and trading volumes.
Cardano’s ADA token rose 22% to $0.97, with a market cap of $34.8 billion, reaching its highest price since April 2022. The rise coincided with increased network activity and updates to Cardano’s governance framework. Founder Charles Hoskinson’s involvement in shaping U.S. crypto policy under a new administration has also fueled interest.
The recent surges in XRP, XLM, and ADA signal the return of “altcoin season,” where alternative cryptocurrencies outperform Bitcoin. The Altcoin Season Index, which measures altcoin performance relative to Bitcoin, moved into altcoin territory. Experts predict the listing of altcoins as exchange-traded products on traditional platforms could drive further growth.
Broader Market Context
Analysts predict that XRP, XLM, and ADA lead market gains due to strong investor sentiment. The total cryptocurrency market cap remains steady at $3.4 trillion, but altcoins are gaining dominance as Bitcoin’s share declines. Analysts foresee increased involvement from retail and institutional investors, with many tokens benefiting from heightened trading activity on accessible platforms like Coinbase.
With Gary Gensler’s resignation slated for January 2025, market participants anticipate a shift in regulatory tone. Ripple’s legal clarity and growing adoption, coupled with Stellar’s payment infrastructure and Cardano’s governance updates, position these tokens for further growth. The transition could mark a new chapter for cryptocurrencies in the U.S., fostering innovation and wider acceptance.
A Shift in Regulatory Landscape
As global regulations shift, XRP, XLM, and ADA lead market gains, attracting more retail investors. The resignation of Gensler, known for his strict regulatory approach toward cryptocurrencies, has created a wave of optimism in the market. Tokens like XRP, which faced prolonged legal battles with the SEC, have surged in response, signaling hope for a more crypto-friendly regime. XRP’s jump to $1.44 and XLM’s rise to $0.33 reflect investor sentiment that regulatory barriers might ease under new leadership. This potential shift could encourage broader adoption of digital assets, particularly as traditional financial players explore blockchain applications.
However, this optimism must be tempered. A change in leadership does not guarantee a complete overhaul of the SEC’s stance on cryptocurrencies. The legal complexities surrounding XRP, despite its partial victory in court, highlight ongoing regulatory ambiguities. New leadership may still prioritize market stability and consumer protection, which could introduce different but equally stringent measures.
The price increases in XRP, XLM, and ADA also underscore the influence of retail investors. Tokens with lower unit costs tend to attract smaller investors, particularly during periods of heightened market activity.
Also Read: Cardano’s ADA Leaps to 2.5-Year High of 90 Cents, Market Buzzes.
