By Frank Martin (MoneyAmped.com)
Three top altcoins, XRP, Cardano, and Tron, have outperformed Bitcoin in the past 30 days, leaving many to speculate about the catalyst behind their rallies and whether they will replicate these price performances in 2025.
According to data from CoinGecko, Cardano has surged 73% in the past month, while XRP and Tron are up 304% and 68%, respectively. By comparison, Bitcoin has surged 19% within the same period.
So, what’s fueling the rallies in XRP, Cardano, and Tron? There are a number of reasons, including:
Expected Regulatory Clarity Under Donald Trump Administration
One of the catalysts driving the three altcoins to higher levels is the expectation that pro-Btcoin President-elect Donald Trump will push for clear crypto rules when he assumes office next month.
According to a crypto analyst at Steno Research, Mads Eberhardt, the re-election of Trump has boosted hopes that crypto players in the United States will finally have the regulatory clarity they’ve been calling for in the past few years.
He notes that assets like XRP have failed to perform under Joe Biden’s administration due to constant regulatory attacks from the US Securities and Exchange Commission (SEC).
XRP’s issuer, Ripple, has been at a regulatory war with the SEC since 2020 over accusations of not registering the token as a security with the regulator. This has forced several US-based crypto exchanges to delist XRP, making it difficult for investors to access it.
However, Trump’s victory against Kamala Harris in November could bring the regulatory war to an end, allowing XRP and other altcoins to prosper and set new all-time highs.
Investors Believe Ripple Will Win Its Legal Battle With the SEC
Market analyst at eToro, Josh Gilbert, claims rising optimism among investors that the SEC will drop its charges against Ripple is the primary driver of the rally.
When the agency filed a lawsuit against the XRP issuer in 2020, it demanded $2 billion in penalty fees to settle the charges. However, a US court asked Ripple to pay just $120 million in August, almost 93% lower than the amount demanded by the SEC. The regulator has since appealed the court’s ruling, calling it unfair.
Nonetheless, many believe the appointment of pro-crypto Paul Atkins as the next SEC Chair will make Ripple’s case go away. As such, investor confidence will be boosted, enabling XRP to rally further.
Investors in South Korean Love Altcoins
According to 10x Research CEO Markus Thielen, increased altcoin trading by South Korean investors has been a massive catalyst of recent rallies in XRP, Cardano, and Tron. He reveals that daily trading volume for altcoins on South Korean exchanges has averaged $15 billion since the start of the month, with XRP being the most traded.
Thielen claims that the rising altcoin trading volume coupled with a declining Bitcoin dominance is an indication that the ‘alt season’ is about to start.
Most Retail Investors Are Familiar With XRP, Cardano, and Tron
Another possible reason the three altcoins are pumping is that crypto investors from the 2021 bull cycle are back in the market and investing in assets they are familiar with. Cardano, Tron, and XRP are among the altcoins that performed well in 2021, helping some investors earn millions in profit.
Eberhardt says these investors could be injecting funds into the three crypto assets, hoping they will replicate their previous rallies.
Cardano, XRP, and Tron Have Cultish Communities Like Meme Coins
Meme coin enthusiast Murad Mahmudov claims that the latest rallies in Tron, XRP, and Cardano are partly fueled by their cultish communities. For starters, a cultish community is one whose members spend most of their time advocating for a particular asset for free in an effort to build hype around it and attract new investors.
Whether the XRP, Cardano, and Tron communities can sustain the buzz around the tokens in the coming months remains to be seen.
