XRP (XRP 5.63%) is surging on Thursday. The price has risen 6% in the last 24 hours as of 2:17 p.m. ET. The move comes as the S&P 500 (^GSPC 1.35%) gained 1.1% and the Nasdaq Composite (^IXIC 1.85%) gained 1.7%.

Multiple positive developments are driving Ripple's token higher.

Trump trade deal boosts market sentiment

President Trump announced today that a trade deal has been reached with the U.K., the first since Trump's sweeping tariffs were announced in April. Investors across the market reacted positively. The details are light, and the deal has yet to be finalized, but the move indicates a resolution to the trade war could be coming. The uncertainty sparked by Trump's tariffs has hit speculative assets like XRP especially hard, so investors were pleased to see positive movement.

Bitcoin milestone fuels market-wide euphoria

Likely as part of the renewed optimism following the trade deal news, Bitcoin crossed the $100,000 threshold once again. The six-figure mark is a psychological barrier, and its crossing sparked a rally across crypto. As it often does, XRP followed closely behind Bitcoin's movements.

Image source: Getty Images.

Coinbase makes a huge purchase

In the meantime, Coinbase announced today it will acquire Deribit, the world's largest cryptocurrency derivatives platform. The approximately $2.9 billion deal was viewed across the market as positive for crypto at large and a sign of the growing maturation of the industry, sending XRP and other cryptos higher.

XRP is overvalued

While the positive news across the market helped boost XRP, I have my doubts. To be sure, it is a crypto with real-world utility already in widespread use, and in a world of meme coins, that is worth something. The SEC could also soon grant issuers the green light to begin offering a spot XRP ETF, no doubt a positive catalyst.

Regardless, with a market capitalization of over $130 billion, I believe it is overvalued.