UPDATED The cryptocurrency market has surged towards the $4 trillion valuation mark, driven by XRP's latest rally to an all-time-high and broader institutional momentum.
XRP
XRP soared to more than $3.60 soon after midnight (UTC) on Friday, capping an impressive run that saw gains in nine of the previous 10 days. Ripple's token has surged 55% this month alone, propelled by various positive developments including regulatory clarity, licensing and standards progress, ETF (exchange-traded fund) inflows and payments infrastructure partnerships.
$4 Trillion Mark
The broader crypto market reflected this optimism, with the CMC100 market index posting substantial gains fueled by a rally in alternative cryptocurrencies. The benchmark stopped just below the $4 trillion mark, although other measures such as coingecko's surpassed the threshold.
Ether (ETH) also advanced and was up 4% in Friday trading as at 09:54 – the native token of the Ethereum blockchain has almost reversed this year’s losses and is trading above $3,600.
US tailwinds
The market is flying on the tailwinds of the US's surge into crypto during the first six months of Trump's second term. Trump is determined to establish the US as the top global crypto hub, with new legislation for market structure and stablecoin regulation advancing this week in Congress in Washington.
The regulatory developments have coincided with a rise in interest from asset manageement firms such as BlackRock and corporations that are increasingly embracing digital assets as legitimate investment vehicles. The market also received a boost earlier this week when Bitcoin (BTC) established a new all-time-high above $123,000 on Monday.
Altcoin rally
Beyond the major tokens, altcoins have contributed substantially to the recent rally. Among the top 10 digital assets by market capitalization, Dogecoin (DOGE) and Cardano (ADA) have posted 24-hour increases of 11% and 4.9% respectively.
The altcoins surge has been amplified by growing expectations that additional cryptocurrencies may soon be included in ETF offerings. The US Securities and Exchange Commission (SEC) is awash with applications to incorporate DOGE, ADA and a host of other up and coming coins, responding to anticipated investor demand for broader crypto currency exposure.
Investor optimism
The CMC Fear and Greed Index climbed to 71/100, representing a 30-point advance since 22 June. The reading indicates heightened investor optimism and buying activity, although it's still some way below its 12-month "Extreme Greed" high of 88.
Current events suggest continued momentum as regulatory clarity improves and institutional adoption accelerates, though investors remain watchful for potential volatility in this notoriously dynamic market.
