Cardano and XRP outperform Bitcoin by over 200% as developers hard work pays off
Cardano (ADA) and the XRP Ledger (XRP) have started outperforming Bitcoin amid expectations of regulatory changes under the incoming Trump administration. Both tokens have surged remarkably since the US presidential election, capturing investor attention and signaling a potential realignment in the digital asset landscape.
While the two previously underperforming coins have felt the pressure of Gary Genslers regulation through enforcement tactics, developers continued to build, and business partnerships were secured. Now, the regulatory landscape in thUSUS looks to be about to perform a 180. Investors see ADA and XRP as value plays whose prices havent accurately reflected the projects capabilities and potential.
ADAs meteoric surge fueled by regulatory optimism and technical advancements
Cardanos ADA token has seen an impressive 275% increase over the past 30 days, soaring above $1.20 and maintaining its momentum. This surge outpaces Bitcoins 38% rise to just shy of $100,000 before a slight retracement to around $95,000 as of press time. The catalyst behind ADAs exceptional performance mainly anticipates a more favorable regulatory environment under President-elect Donald Trump.
Previously, ADA faced headwinds due to regulatory scrutiny, notably being cited by the Securities and Exchange Commission (SEC) in actions against major exchanges. The election outcome has shifted market sentiment, with participants expecting the new administration to alleviate regulatory pressures on digital assets like ADA. The resignation of SEC Chair Gary Gensler has further fueled optimism for a crypto-friendly regulatory approach.
In addition to regulatory factors, Cardanos ongoing technical developments have bolstered investor confidence. The platform has implemented significant network upgrades, including Chang to increase decentralized governance, Hydra for enhanced scalability, and Mithril for efficient consensus mechanisms. These advancements have improved the ecosystems functionality, fostering a thriving environment for decentralized applications and strategic partnerships that enhance the networks utility.
Whale activity around ADA has intensified, with wallets holding over $10 million worth of the token, increasing their holdings by over 140%. Trading volume has also surged, indicating growing interest from both retail and institutional investors.
Cardanos focus on scalability, interoperability, and sustainability remains central to its growth strategy. In the Volatire development phase, the project aims to execute decentralized governance mechanisms, positioning Cardano as a robust and adaptable blockchain platform.
XRP surges as business developments bear fruits
Simultaneously, XRP has surged to become the third-largest digital asset by market capitalization. The tokens value climbed to $2.84, its highest level in seven years, surpassing major cryptocurrencies like Solana, USDT, and Binance Coin. Since the election, XRP has attracted over $120 billion in new investment product purchases, helping to push its market cap to $162 billion.
Investors are optimistic that the incoming administration will adopt a more supportive stance toward cryptocurrencies, potentially benefiting XRP and Ripples operations. The anticipated regulatory shift is further accentuated by the possible approval of an XRP Exchange-Traded Fund (ETF). Such a development could significantly increase institutional adoption and liquidity for XRP.
XRP has been under regulatory scrutiny since December 2020, when the SEC charged Ripple and two executives with conducting a $1.3 billion unregistered securities offering. The legal battle has weighed on XRPs performance, but impending changes to the SEC leadership indicate an easing of regulatory pressures. Optimism about reduced legal hurdles has contributed to the tokens recent surge.
Technological advancements on the XRP Ledger have also enhanced the tokens appeal. The account reserve fee was reduced by 90%, from 10 XRP to 1 XRP, significantly lowering the networks cost. The reserve fee for NFTs also decreased from 2 XRP to 0.2 XRP, making it more accessible for users and developers.
Ripples collaborations with financial institutions have further strengthened XRPs prospects. The company introduced tokenized money market funds on the XRP Ledger, signaling growing real-world use cases for the token. This move aligns with Ripples strategy to expand XRPs utility within the global financial system.
Ripples long-awaited stablecoin, RLUSD, is reportedly poised for launch tomorrow amid regulatory approval in New York. This development could open new avenues for XRPs utility in the financial sector. Meanwhile, Ripple continues unlocking 1 billion XRP tokens monthly but has immediately relocked 770 million tokens for another five years, showcasing a commitment to market stability.
Bitcoins performance makes way for altcoin surge.
While Bitcoin has reached new all-time highs, its recent gains have been outpaced by ADA and XRPs. Bitcoin soared to $99,600 on Nov. 22 before settling around $95,000, remaining less than 5% shy of the $100,000 milestone. The outperformance of ADA and XRP highlights a shift in market conditions, where alternative cryptocurrencies are capturing significant investor attention.
The expected policy changes under the new administration have injected optimism into the market, particularly for tokens previously hindered by regulatory constraints.
Cardano and Ripples commitment to enhancing their platforms through continuous development has positioned them favorably in this newly emerging landscape. Their focus on scalability, efficiency, and real-world applications appears to resonate with investors seeking to capitalize on blockchain technology, which is free to grow without aggressive regulation by enforcement.
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Text source: CryptoSlate
