- XRP, XLM, and ADA experienced significant price jumps following the announcement of SEC Chairman Gary Gensler’s resignation, with XRP rising 20%, XLM 32%, and ADA 22%.
- The price increases for these older generation tokens are attributed to the potential for a more crypto-friendly regulatory environment and the return of retail investors who are familiar with these tokens from the previous bull market.
- The recent price surges in XRP, XLM, and ADA are seen as a potential sign of the return of the “altcoin season,” a period when alternative cryptocurrencies experience large returns.
The cryptocurrency market has seen significant gains in XRP, XLM, and ADA over the past day following an important regulatory announcement. These veteran digital assets have reached multi-year highs, outpacing the broader crypto market.
Gensler Resignation Sparks Rally
On Thursday, Gary Gensler announced he will resign as chairman of the U.S. Securities and Exchange Commission (SEC) on January 20th. This news has been seen as positive for the crypto industry, as Gensler was viewed as antagonistic towards digital assets during his tenure. The price jumps for XRP, XLM, and ADA are being attributed in large part to optimism around more crypto-friendly regulation with Gensler’s departure.
Surging Prices
In the past 24 hours, XRP has jumped 20% to $1.44 and a market capitalization of $82 billion. Meanwhile, XLM has increased 32% to $0.33, reaching a three-year high. ADA has also climbed 22% to $0.97 cents, hitting levels not seen since April 2022. For comparison, the total crypto market cap has remained flat over the same period.
Retail Investors Pile In
Analysts argue the gains in these tokens point to a return of retail investors to the crypto space. XRP, XLM, and ADA are more accessible to individual traders given their lower per-unit cost. The tokens are also popular on mainstream exchanges like Coinbase and Robinhood. Their familiarity for investors who participated in the last bull run is driving renewed interest.
Signs of Altcoin Season
Some believe the rallies could mark the start of an altcoin season, where alternative cryptocurrencies outperform Bitcoin. Many altcoins may soon be listed on major traditional exchanges as exchange-traded products. This anticipated surge in demand and trading volume from institutional investors could further propel altcoins.
Conclusion
The robust rebounds from XRP, XLM, and ADA following the Gensler news shows the enduring appeal of these veteran tokens. Their accessibility and name recognition with retail traders seems to be fueling this rally. Whether this points to a larger altcoin run remains to be seen, but the signs are promising for those holding alts. The crypto community will be closely watching these developments in the weeks ahead.
