The resignation of Gary Gensler as chair of the US Securities and Exchange Commission (SEC), effective January 20 – the same day President-elect Donald Trump is scheduled to be inaugurated – will be a monumental day for the XRP community. In his latest video, crypto analyst Rodney (@cryptojourneyrs) shared An Analysis of Price Potential in the Post-Gensler Era.
At the time of his analysis, XRP was trading at $1.43, indicating a An amazing 172% increase More than last month. Market capitalization had risen to $81 billion, with $22 billion in daily trading volume. “XRP is starting to return to its normal place in crypto as one of the leading altcoins,” commented Rodney.
Why XRP is poised for higher growth
In his video, Rodney suggests that Gensler may have been swayed by Trump’s promise to fire him on his first day in office. Gensler’s decision to resign preemptively “Gary Gensler is going to step down from his role as chairman of the SEC on January 20th, the same day that Trump is going to be inaugurated,” Rodney said. “Trump promised to fire Gary Gensler on day one, so I think Gary Gensler wanted to get on his shield and resign on his own.”
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Reflecting on the SEC’s lawsuit against Ripple, Rodney noted its significant impact on pricing and market perception. “When the SEC sued Ripple, [XRP] Price reduced by 50%. This was one of many lawsuits that the SEC and Gary Gensler filed against several different crypto projects. It looked like they were trying to regulate space out of existence,” Rodney said.
He pointed out that despite the legal challenges, XRP remains a top cryptocurrency. “Even through all the BS, XRP has still been a top crypto and it hasn’t really fallen out of the top 10 in many years,” he said.
Rodney also discussed ripples Partial win against SEC in July 2023, which set an important precedent in the crypto industry. However, he expressed surprise that the price did not react more positively at the time.
“When we heard the news that they partially beat the SEC, XRP started pumping up to around $0.67 but then immediately dropped to around $0.50 and basically did nothing,” he observed. “It just wasn’t going well with the cryptocurrency market… it was a running joke that it was the kind of stablecoin we liked.”
Turning to the political landscape, Rodney explained: “Donald Trump basically eliminated Kamala Harris and is going to be the next president of the United States,” he said. He emphasized Trump’s pro-crypto stance, noting that he was “very open about supporting cryptocurrencies” and was “the first president to buy anything with cryptocurrencies.”
Rodney highlighted the involvement of various crypto projects in political campaigns, mentioning that “many cryptocurrency products were behind the scenes funding the campaigns of both candidates.”
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Along with the political shift, Rodney expressed optimism about the future integration of cryptocurrencies into government systems. “Now more than ever, it looks 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 the main objectives of XRP, “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. He suggested that with supporting figures in government, XRP could realize this potential.
How high can the XRP price go?
Rodney also explores his price predictions for XRP, considering various market capitalization scenarios.
If XRP were to achieve Ethereum’s market cap of around $400 billion, this would result in a 4.9x increase from its current price, bringing XRP to around $6.98. “Say, for example, XRP becomes a part of our government and we actually use it for its original utility. Everyone uses it, and it magically got the same market cap size as Ethereum,” he speculated.
He calculated a 24x increase, envisioning XRP reaching Bitcoin’s market cap of $2 trillion, which would put XRP at around $33. “Let’s pretend to be a little crazy […] Say we gave it the market cap size of Bitcoin which is currently sitting around $2 trillion,” he mused.
He considered a $10 XRP, corresponding to a market cap of $600 billion, as a reasonable possibility. “I think $10 XRP or 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 difficult for any cryptocurrency project to hit those market cap sizes because Bitcoin currently dominates the entire market.”
At press time, XRP was trading at $1.40.
Featured image created with DALL.E, chart from TradingView.com
