Ripple-backed crypto, XRP, has made a slight 1.29% surge on the day, pushing its price to $2.57. However, this price surge raised the XRP’s market cap to $150.64 billion. This makes it take up the third spot in coin ranking by market capitalization.

The ascent put XRP on top of Tether (USDT), which recently achieved $150 billion in market capitalization for the first time. Nonetheless, USDT still remains the biggest stablecoin used worldwide and an important one in crypto trading pairs. But the broader picture lies with XRP, which is now making waves in the crypto sector post-SEC legal battles.

XRP is now trading at its best since early March. However, compared to other crypto coins, it is still lagging behind. XRP’s price is below its record January 2028 level by around 24%.

XRP’s Market Cap Surges Fueled by Regulatory Clarity

The surge in XRP’s market capitalization was supported by gradual institutional interest. In fact, part of the momentum resulted from an earlier update in legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).

Ripple and the SEC filed a joint motion for settlement of their legal disparity recently. The $50 million proposed settlement, if passed, would also put an end to decades of litigation in the courtroom. SEC also released $125 million currently held under escrow, hence increasing Ripple’s liquidity.

The legal motion retains the previous court decision that XRP’s sales across secondary markets did not qualify to be securities offerings. Such legal clarity has drawn new investor interest, particularly from institutions that are in search of regulatory certainty.

The growth of USDT at the same time also remains robust. The stablecoin recently reached a $150 billion milestone, supporting its usage on the centralized and decentralized exchange. Nevertheless, the recent price jump and market hike of XRP has pushed it to the third position.

Strategic Expansion Strengthens Ripple’s Position

Ripple’s latest acquisition of Hidden Road also helped to strengthen the position of XRP in the market. The $1.25 billion deal was announced in April and is meant to boost Ripple’s position in institutional finance. Hidden Road is a multi-asset prime brokerage firm, and it aspires to connect its settlement process to XRP Ledger.

The move follows Ripple’s wider aspiration to provide sturdy post-trade services for institutional clients. This involves accelerated clearing, the settlements in real time, and minimized counterparty risk.

In a separate development, it was rumored that Ripple had made a takeover offer to Circle, USDC’s stablecoin issuer. Claims suggested that the offer was between $4 billion and $5 billion. However, Circle turned down the offer as the value was too low considering that it was about to raise capital through an IPO. Although unsuccessful, the move represents Ripple’s plans to grow its presence in the stablecoin market.

Furthermore, Ripple continues to be on the track to promote enterprise-grade blockchain services. Through legal clarity, product expansion, and acquisitions, the firm is looking to extend its use cases beyond cross-border payments.

XRP Gains Momentum Post-SEC Legal Battles

The recovery of XRP has been strengthened by the reduced legal risk. Experts see the settlement negotiations with the U.S. SEC as a turning point in Ripple’s struggle with the regulator. The positive development towards settlements brings regulatory confidence to market participants and clears a major barrier for institutional investors.

Analysts are also keen on new developments regarding the approval of spot XRP ETFs. Although no XRP ETF has been approved so far, any step regarding the approval by the regulators could attract more interest. While volatility remains a major concern, XRP’s new position suggests a renewed demand in altcoins other than Bitcoin and Ethereum.