XRP Price Surge Explained, Key Drivers Behind Its Rise to Third Largest Crypto

The crypto space has witnessed a remarkable surge in XRP’s price over the past ten days, propelling it to new all-time highs and securing its position as the third-largest cryptocurrency by market cap, trailing only Bitcoin and Ethereum.

A combination of regulatory developments, legislative advancements, institutional interest, and ecosystem innovations has fueled this unprecedented rally. Investors are riding a wave of optimism as XRP breaks past $3.40, driven by a confluence of factors that have aligned to create a perfect storm for the digital asset.

This article explores the key catalysts behind XRP’s meteoric rise and its implications for the broader crypto market.

A Perfect Storm of Catalysts

The resolution of Ripple’s long-standing legal battle with the U.S. Securities and Exchange Commission (SEC) has been a pivotal driver of XRP’s recent price surge. In late June 2025, Ripple announced its decision to drop its cross-appeal against the SEC, signaling a potential end to the lawsuit that has loomed over the cryptocurrency since 2020.

Speculation intensified around July 13 that the SEC might also withdraw its appeal, when former SEC attorney Marc Fagel said that there is no delays in the case, everything is going smoothly with no pending actions, other than the SEC to dismiss their appeal. There is a scheduled closed-door SEC meeting on July 17 which it is anticipated that the case will be dismissed at that time. While the case currently remains under appeal in the U.S. Court of Appeals for the Second Circuit, with the next status report due on August 15, the prospect of a final resolution has significantly reduced uncertainty, leading to a 55% price gain in just two weeks.

Legislative progress in the United States has further bolstered XRP’s bullish momentum. The passage of pro-crypto stablecoin bills, including the GENIUS Act and CLARITY Act, has created a more favorable environment for digital assets. The GENIUS Act was signed into law by President Trump earlier today, which the build up to these bills has unlocked institutional capital and driven the overall crypto market cap beyond $4 trillion. This regulatory clarity has instilled confidence among investors, contributing to XRP’s upward trajectory as part of a broader market rally during what has been dubbed “Crypto Week.”

The buzz surrounding XRP exchange-traded funds (ETFs) has also played a significant role in the price surge. Speculation about spot and futures XRP ETFs, coupled with recent approvals, has attracted substantial institutional inflows, resulting in a weekly price increase of over 30%. The anticipation of ETF launches has positioned XRP as a prime candidate for further gains, as institutional investors view it as a gateway to capitalize on the cryptocurrency’s growing adoption. This ETF euphoria has amplified market enthusiasm, drawing in both retail and institutional capital.

Institutional and whale accumulation has added fuel to the rally, with large-scale buying pushing XRP’s open interest to $10 billion and doubling trading volumes. The influx of new addresses and heightened investor interest reflects a growing confidence in XRP’s long-term potential. This accumulation, combined with technical breakouts and rising market value to realized value (MVRV) ratios, has created a feedback loop of FOMO-driven momentum, further propelling XRP’s price past key resistance levels.

Ripple’s ecosystem developments have also enhanced XRP’s utility and adoption, contributing to its price action. The launch of the XRPL EVM sidechain and DEX compliance amendments has enabled regulated use cases, while BNY Mellon’s custody of Ripple’s RLUSD stablecoin has added credibility to the ecosystem. Additionally, Ripple CEO Brad Garlinghouse’s Senate testimony has underscored the company’s commitment to fostering innovation, further boosting investor confidence. These advancements have positioned XRP as a player for cross-border payments and decentralized finance, driving demand for the token.

The broader market dynamics have also played a crucial role in XRP’s rally. As Bitcoin consolidates around $120,000, capital has rotated into altcoins, with XRP emerging as a top beneficiary. The altcoin market has experienced a significant upswing, with XRP posting a 25% gain over the past seven days. This rally is supported by strong technical indicators and a surge in market sentiment, as investors chase the momentum fueling the broader crypto market.