Ripple’s prolonged legal dispute with the U.S. Securities and Exchange Commission (SEC) recently culminated in a partial victory, signifying a significant uptick in the demand for XRP. As per crypto analytics firm Kaiko, XRP’s trading volume on cryptocurrency exchanges has surged, returning to pre-lawsuit levels in the U.S. markets.
What Impact Did the Legal Ruling Have?
The favorable court decision last year was a pivotal moment for Ripple Labs. The ruling clarified that XRP sold on exchanges should not be classified as a security, leading to a substantial increase in XRP demand. Consequently, the share of U.S. platforms in the global XRP trading volume escalated from 2% to 14%, reaching the volumes seen before the SEC lawsuit.
Following the ruling, investor and trader interest in XRP surged as major U.S. exchanges like Coinbase and Gemini relisted the cryptocurrency. This decision enabled traders, previously sidelined by the lawsuit, to re-enter the market, thereby boosting demand.
How Did Speculations Affect XRP’s Price?
Kaiko’s data revealed that XRP outperformed Bitcoin (BTC) in July, with a 35% increase compared to Bitcoin’s 9% rise. This surge was driven by speculations surrounding the SEC’s actions and an anticipated closed-door meeting. However, the meeting’s cancellation resulted in a decline in XRP’s price.
At the time of writing, XRP was valued at $0.49, reflecting an 18% decrease over the past week. Concurrently, Bitcoin saw a 19% drop, trading at 55,688. Ripple’s ongoing legal challenges with the SEC continue to contribute to XRP’s price volatility.
Concrete Takeaways for Investors
- Ripple’s legal triumph has significantly increased XRP demand on exchanges.
- The share of U.S. platforms in global XRP volume has risen to 14%.
- Speculations have caused notable fluctuations in XRP’s price.
This landmark legal win is a noteworthy milestone for Ripple and the broader cryptocurrency community. The resurgence of XRP indicates a positive outlook for blockchain technology and digital currencies. However, the 44 billion XRP held by Ripple remains a significant obstacle to substantial price hikes.