XRP climbed more than 20% in 24 hours, moving into fifth place among the largest crypto assets by market value as a broader digital-asset rally accelerated. The move came after the U.S. Treasury announced plans to double its long-duration bond buybacks, while renewed political attention on U.S. crypto regulation added another catalyst for risk appetite.
Market Reaction: XRP Reclaims a Top-Five Position
XRP rose 20.7% to approximately $1.24, its strongest daily advance since February, lifting its market value to about $77.47 billion. The rally allowed XRP to overtake USD Coin (USDC) in the crypto rankings, with XRP holding a market-value advantage of roughly $5.20 billion over the stablecoin.
The move was part of a wider repricing across digital assets rather than an isolated XRP event. Bitcoin climbed above $70,000 for the first time since June, while Ether and other major tokens also advanced as the Treasury’s decision to increase bond buybacks helped ease pressure in longer-duration U.S. debt markets. The combination of lower yields, a softer dollar and rapid short-covering created more favorable conditions for higher-beta crypto assets.
Macro Liquidity and the Short-Squeeze Effect
The Treasury plans to raise the cap on long-term bond buybacks from $2 billion to $4 billion per operation beginning September 9, targeting securities with maturities of 10 to 30 years. Although the program is limited relative to the overall Treasury market, the announcement contributed to lower bond yields and improved risk sentiment, providing an important macro backdrop for the crypto rally.
Leverage amplified the move. Approximately $3.3 billion in crypto short positions were liquidated as prices moved sharply higher, forcing traders positioned for declines to close their positions. Such liquidations can accelerate upside momentum because forced position closures create additional market demand, particularly when derivatives positioning is heavily skewed toward bearish trades. For XRP, this mechanism appears to have magnified an already broad-based recovery.
Regulatory Signals Strengthen XRP’s Institutional Narrative
The rally also coincided with renewed attention to U.S. digital-asset legislation. President Donald Trump met with crypto industry executives at the White House and urged Congress to advance the CLARITY Act, which is intended to establish clearer regulatory definitions and determine federal oversight of different digital assets. Ripple CEO Brad Garlinghouse was among the industry figures involved in the discussions.
For XRP, regulatory developments carry particular significance because the asset’s market history has been closely connected with questions surrounding its legal status and Ripple’s relationship with U.S. regulators. A clearer framework could reduce some of the uncertainty surrounding institutional participation, although legislative approval remains unresolved. The Senate has yet to complete the process, with a procedural vote currently expected after the August recess.
Investor Sentiment Shifts as XRP Re-enters the Spotlight
The move into fifth place changes the competitive picture among large-cap crypto assets. XRP’s approximately $77.47 billion market value now puts it ahead of USDC, demonstrating how quickly rankings can change when a large liquid token experiences a sharp repricing.
However, the ranking should be viewed alongside the market’s broader leverage dynamics. A significant portion of the rally has been supported by short covering, meaning continued momentum will depend increasingly on fresh demand rather than forced liquidations. Investors will therefore be watching whether XRP can maintain its higher valuation after derivatives positioning normalizes and whether regulatory progress translates into sustained institutional participation.
Looking ahead, XRP’s position among the largest crypto assets will depend on a combination of market liquidity, regulatory developments, institutional demand and network fundamentals. The immediate rally demonstrates how quickly macroeconomic policy signals and positioning can reshape crypto rankings, but maintaining those gains will require evidence that demand extends beyond a short-lived squeeze and broader risk-on move.
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