The explosive rallies of several "dino coins"—including XRP, Tron, Cardano, and Hedera—have left many in the crypto community stunned. These surges appeared seemingly out of nowhere, with little obvious news or catalysts.
So, what’s driving these massive gains, and will the momentum continue into 2025?
1. Regulatory Clarity Boosts Altcoins
"A major factor is the impending regulatory clarity, which has a particularly positive impact on altcoins," said Mads Eberhardt, senior crypto analyst at Steno Research.
The election of Donald Trump and his administration’s pro-crypto stance have been significant catalysts for altcoins.
"Altcoins have long lacked the regulatory certainty that Bitcoin and Ethereum enjoyed."
This is especially true for tokens like XRP, which faced scrutiny under SEC Chair Gary Gensler. XRP’s challenges became evident when U.S.-based exchanges delisted it in late 2020 and early 2021 due to the SEC’s lawsuit against Ripple.
However, the tide turned after Trump’s 2024 election victory and the appointment of a new SEC chair, Paul Atkins, bringing much-needed clarity for altcoins.
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2. Investors Expect Ripple to Win Its Legal Battle Against the SEC
Josh Gilbert, an analyst at eToro, noted that one of the primary drivers behind XRP’s rally—and its spillover effect on other altcoins—is the growing belief that Ripple’s long-standing legal battle with the SEC is nearing resolution.
"Trump’s election and Gensler’s expected resignation are major catalysts. Clearer regulation benefits XRP and the broader altcoin market."
Ripple was one of the SEC’s first major crypto targets. In December 2020, the SEC sued Ripple, alleging XRP was an unregistered security. Though Ripple celebrated a reduced penalty in August 2025, the SEC’s appeal reignited the case.
3. South Korean Retail Investors Fuel Altcoin Demand
Markus Thielen of 10x Research highlighted South Korea’s crypto retail trading as a key catalyst for altcoin outperformance.
- Retail trading volumes hit $18 billion on December 2, 2025.
- Traders flocked to high-momentum altcoins like XRP, DOGE, and XLM.
Thielen added that moderate Bitcoin funding rates alongside soaring altcoin interest signal an ongoing "altcoin season."
4. Familiar Brands Attract Retail Investors
Eberhardt pointed out that "dino coins" like XRP and ADA benefit from brand recognition:
"Retail investors are more likely to invest in cryptocurrencies they already know."
As retail participation grows, these established tokens gain an edge over newer, less familiar projects.
5. Cult Status and Perceived Utility
Memecoin advocate Murad Mahmudov attributed the rally to the "cult status" of these tokens’ communities. However, trader Kun emphasized that holders genuinely believe in their utility:
"XRP holders don’t see it as a meme—they’re convinced of its fundamentals."
Will the Rally Continue?
Eberhardt believes altcoins are just getting started:
"This could be the beginning of a sustained altcoin season, especially with lower interest rates boosting risk appetite."
FAQs
Q: Why did XRP surge 450% in a month?
A: Regulatory optimism, Ripple’s legal prospects, and South Korean retail demand drove the rally.
Q: Are "dino coins" safer than newer altcoins?
A: Their established track record attracts investors, but risks remain (e.g., regulatory hurdles).
Q: How long will the altcoin season last?
A: It depends on macroeconomic conditions and regulatory developments, but momentum is strong.