Why did XRP, XLM and ADA win so much in the past week?

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Last Updated on 26 November 2024 by CryptoTips.eu

This past weekend, some crypto commentators didn’t seem to understand why XRP (published by Ripple Labs), XLM (developed by Jed McCaleb) and ADA (founded by Charles Hoskinson) were the major winners in the CoinMarketCap top 20 over the past few days. However, you don’t have to look far to find the reason for this.

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Speculation and altseason

In fact, there are actually two reasons why digital coins such as XRP, XLM and ADA did very well last week.

The first is that after a period of great Bitcoin price growth, there is usually an entrance by new crypto investors into other coins. This is a phenomenon known as AltSeason, or the period in which altcoins outperform Bitcoin.

XRP, ADA and XLM still have a lot of room make up against Bitcoin’s spectacular rise of the most recent weeks and months and are therefore eagerly being picked up by investors.

USA, USA, USA

The second, and much more important reason, is that there has been a rumor in the US media since last week that the Trump administration would like to abolish taxes on crypto profits for digital coins issued by an American company.

That’s actually a contradiction in terms because any cryptocurrency can be traded and purchased worldwide, and the company that issues the coin can be located in any country. Investors didn’t seem to care and ran with the new information. 

The CEO of XRP is Brad Garlinghouse while the coin is run by Ripple Labs, a California company, the founder and CEO of ADA (Cardano) is Charles Hoskinson, an American from Colorado. Lastly, XLM was developed by Jed McCaleb, another American who we know from the famous MtGox history.

You see, the three big winners from the top 20 of the past week are the coins that would benefit if Trump crypto rules apply only to ‘American’ coins. Please note, no one from the Trump camp has confirmed this rumor at this time.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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