Janice R. Andrews
The XRP coin has had a remarkable spike, rising 7% in the last day to surpass 64 cents. This is the highest price since March 25th, driven by bullish traders who are placing bets on a potential resolution to the current legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
During Asian trading hours, XRP’s performance has been superior to those of prominent cryptocurrencies like bitcoin (BTC) and ether (ETH), as well as the larger CoinDesk 20 index. Following a filing on Tuesday that revealed the SEC intended to modify its case against cryptocurrency exchange Binance, market confidence has returned. The change relates to “Third Party Crypto Asset Securities,” implying that the court would not have to make a determination about the unregistered securities status of tokens such as Solana’s SOL and Polygon’s MATIC just yet.
Although no particular coins were mentioned in the SEC filing, traders surmise that this action might indicate a settlement in the SEC’s lawsuit against Ripple Labs. In the past, the SEC has maintained that Ripple released XRP without registering it as a security. It’s important to remember that XRP and Ripple are two different things. While XRP is a stand-alone digital asset used for online payments and currency exchanges, Ripple is a fintech business that wants to build a worldwide payments network.
The planned August release of one billion XRP tokens, which are now valued at $641 million, is expected to heighten market interest. Increasing the supply of tokens is often expected to cause prices to decline, but new study suggests that, because of improved liquidity, this may potentially strengthen a positive trend.
CoinGecko’s market statistics indicates that demand for XRP is largely driven by South Korea. Volumes for the XRP-Korean Won trading pair were $386.5 million, while the XRP-USDT trading pair on Binance witnessed volumes of $352.5 million. It is well known that South Korean traders manipulate price fluctuations, boost purchasing pressure, and ignite ecstatic rallies in the cryptocurrency market.
The currency had a 20% increase earlier in July as XRP’s trading activity on regional exchanges outpaced that of bitcoin and tether (USDT). The increased activity indicates that XRP may keep rising as investors hold out hope for a successful resolution in the Ripple-SEC lawsuit.
The recent price spike of XRP and the impending token unlock highlight the optimistic market attitude surrounding the token, as the cryptocurrency world anxiously anticipates future developments. For both Ripple and the larger cryptocurrency industry, the SEC case settlement might be a major turning point.
