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The resignation of Gary Gensler as the Chair of the US Securities and Exchange Commission (SEC), effective January 20th, coinciding with President-elect Donald Trump’s inauguration, marks a pivotal moment for the XRP community. In a recent analysis, crypto expert Rodney (@cryptojourneyrs) delved into the price potential for XRP in the post-Gensler era.
At the time of the analysis, XRP was trading at $1.43, showcasing an impressive 172% increase over the past month. With a soaring market capitalization of $81 billion and a daily trading volume reaching $22 billion, XRP has been reclaiming its position as a dominant altcoin. Rodney commented, “XRP is starting to return to its normal spot in crypto, being one of the dominant altcoins.”
Why XRP Is Poised To Surge Higher
In his video, Rodney speculated that Trump’s commitment to dismiss Gensler on his first day in office might have prompted Gensler’s preemptive resignation. “Gary Gensler is going to be stepping down from his role as the chair of the SEC on January 20th, the same day Trump is going to be inaugurated,” Rodney explained. “Trump promised to fire Gary Gensler on day one, so I think Gary Gensler wanted to go out on his shield and resign on his own.”
Impact of the SEC’s Lawsuit Against Ripple
Reflecting on the SEC’s lawsuit against Ripple, Rodney noted its substantial effect on XRP’s price and market perception. “When the SEC sued Ripple, [XRP] price dipped 50%. This was among numerous lawsuits that the SEC and Gary Gensler filed against various crypto projects. It felt as if they were attempting to regulate the space out of existence,” Rodney stated.
Despite these legal hurdles, XRP has maintained its status as a top cryptocurrency. “Even through all the challenges, XRP has still been a top crypto and it really hasn’t fallen out of the top 10 in many years,” Rodney emphasized.
Ripple’s Legal Battle and Market Reactions
Rodney also discussed Ripple’s partial victory against the SEC in July 2023, which set a significant precedent in the crypto industry. However, he was surprised by the market’s muted response. “When we heard about that news of them partially beating the SEC, XRP started to pump to around $0.67 but then promptly dipped down to about $0.50 and didn’t really do anything,” he observed. “It wasn’t moving with the cryptocurrency market at all… It was a running joke that it was kind of our favorite stablecoin.”
Political Landscape and Its Influence on Cryptocurrency
Turning to the political landscape, Rodney highlighted the significant shifts. “Donald Trump actually ended up defeating Kamala Harris and is set to become the next president of the United States,” he stated. He pointed out Trump’s pro-crypto stance, noting that Trump was “much more open about supporting crypto” and was “the first president to purchase anything with cryptocurrency.”
Rodney also mentioned the involvement of various crypto projects in political campaigns, pointing out that “many cryptocurrency products were funding both candidates’ campaigns behind the scenes.”
The Future Integration of Cryptocurrency in Government
With the political transition, Rodney expressed optimism about the future integration of cryptocurrency into government systems. “Now more than ever, it seems like cryptocurrency is going to be involved with our government, and in my opinion, XRP is going to be up there with the top projects,” he asserted.
He elaborated on XRP’s core objectives, noting, “What is XRP trying to do? They want to be used for international money transfers […] They want to enable fast and low-cost international money transfers and currency exchanges.” Rodney suggested that with supportive figures in government, XRP could realize this potential.
How High Can XRP Price Go?
Rodney further explored his price predictions for XRP, considering various market capitalization scenarios. If XRP were to achieve Ethereum’s market cap of approximately $400 billion, it could lead to a 4.9x increase from its current price, pushing XRP to around $6.98. “Say, for example, XRP becomes a part of our government and we actually use it for its real utility. Everyone uses it, and it magically got the same market cap size of Ethereum,” he speculated.
Imagining XRP reaching Bitcoin’s market cap of about $2 trillion, he calculated a 24x increase, which would place XRP at approximately $33. “Let’s fantasize a little crazier […] Say we gave it Bitcoin’s market cap size that’s currently sitting around $2 trillion,” he mused.
He considered a $10 XRP, corresponding to a $600 billion market cap, as a reasonable possibility. “I think that a $10 XRP or an XRP with a $600 billion market cap size is reasonable,” he concluded.
However, Rodney acknowledged the challenges inherent in these predictions, noting that “it would be tough for any cryptocurrency project to hit those market cap sizes because Bitcoin’s dominating the entire market right now.”
At press time, XRP was trading at approximately $1.40.
