This week, XRP, Hedera, and Stellar have witnessed an upward trend in their cryptocurrency values.
Cryptocurrencies saw a surge in value this week, fueled by anticipation surrounding President Trump's inauguration which could reshape the industry. With fresh faces at the helm of the Securities and Exchange Commission (SEC), and a friendlier Congress on the horizon, thecrypto world is filled with optimism.
Research from S&P Global Market Intelligence revealed that XRP (XRP -0.88%) climbed an impressive 43.2% since last Friday's market close, currently sitting at a 37.3% increase. Hedera (HBAR -4.21%) soared 41% and reported a 31.4% weekly gain, while Stellar (XLM -2.00%) saw a 20% spike at its peak, currently up 14.3%.
The Crypto Climate Shifts
No cryptocurrency has encountered as much turbulence in the past four years as XRP. Facing legal challenges from the SEC, it has become something of a cult cryptocurrency as regulatory changes unfold. Coinbase reported an influx of XRP/USD trading pair volume, surpassing Bitcoin/USD, reflecting an incredible level of investor interest in the U.S.
With regulatory changes expected, XRP is poised to take advantage of a friendlier climate. Whether it maintains its position as the third-most valuable cryptocurrency worldwide remains to be seen.
Hedera's Utility Advantage
Hedera benefits from rumors of a potential exchange-traded fund (ETF), which could draw in more investment. To boost its appeal, it recently partnered with the World Gemological Institute and Vaultik, aiming to tokenize $3 billion of diamonds and other goods on the blockchain, employing cryptocurrencies for defining ownership in a groundbreaking use case.
Correlated Gains For Cryptocurrencies
Stellar's significant growth is closely tied to XRP. Some investors view Stellar as an economical alternative, given its connection to XRP's founding team, and both blockchains share a focus on enabling fast, affordable transactions.
While trading has played a major role in the past few months, investors should be mindful of buying into prevailing rumors, as rapid moves can sometimes obscure future regulations and impact on existing cryptocurrency values.
The shifting regulatory landscape and anticipation for innovation will likely shape the future of the crypto landscape. Stablecoins and non-fungible tokens may emerge as major players, reinforcing the notion that the crypto world is far from being a static landscape. Caution remains a guiding principle as the crypto sphere evolves.
Enrichment Data
Under President Trump's administration, the regulatory outlook for cryptocurrencies is expected to turn more crypto-friendly, with key developments including:
- January 23, 2025 Executive Order on Digital Assets:
- Significant policy shifts to promote USD-backed stablecoins, achieve regulatory clarity, and prohibit Central Bank Digital Currencies (CBDCs).
- Working Group on Digital Asset Markets:
- The establishment of a Working Group within the National Economic Council to examine existing regulations and propose a comprehensive, clear regulatory framework.
- Capital Gains Tax Exemption:
- Planned capital gains tax exemption for US-based crypto projects, including Hedera (HBAR) and Ripple (XRP), attracting greater investment in domestic blockchain technology.
- SEC Regulatory Shift:
- The SEC signals a move towards more lenient regulation with Acting Chairman Mark Uyeda's crypto task force, now focusing on clarity, realistic paths to registration, and sensible disclosure frameworks.
These developments are expected to have positive impacts on US-based crypto projects like Hedera and Ripple (albeit with ongoing legal challenges for Ripple in the SEC case), as well as Stellar, given its focus on financial inclusion and rising traction in the US crypto landscape.
In light of the anticipated friendlier regulatory environment under President Trump's administration, there might be increased opportunities for investing in cryptocurrencies like XRP, Hedera, and Stellar, whose values could potentially surge due to regulatory changes and potential partnerships. With the SEC showing signs of a more lenient regulatory stance, these cryptocurrencies could attract higher investment due to the expected capital gains tax exemption.
To fully capitalize on this crypto-friendly climate, it's crucial for investors to conduct thorough research and make strategic decisions, considering the potential impacts of emerging technologies and regulatory developments on the value of these digital assets.
