The native token of the XRP Ledger, $XRP, has made a remarkable ascent in the cryptocurrency space, capturing a staggering 21% of the market’s trading volume.
This surge comes on the heels of a remarkable price explosion, with XRP’s value surging by over 60% in just one week.
The catalyst for this remarkable growth was a pivotal federal court ruling in New York that declared XRP “is not necessarily a security on its face” in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
As a result of this momentous decision, XRP’s trading volume has now surpassed that of Bitcoin, long considered the most liquid asset in the digital currency space.
The SEC’s lawsuit against Ripple in 2020 accused the firm of violating U.S. securities laws by selling XRP without prior registration with the agency.
However, Judge Analisa Torres’ recent ruling provided a nuanced perspective on XRP’s security status. The judge acknowledged that XRP was considered a security when sold to institutional investors years ago by Ripple. However, XRP’s status as a security was not extended to the public, especially those who acquired XRP from crypto exchanges.
The court ruling acted as a catalyst for XRP’s trading volume, propelling it to new heights. According to Kaiko, XRP’s trading volume surged dramatically after the ruling, catapulting it to a dominant 21% share of the cryptocurrency market’s volume.
In comparison, Bitcoin’s trading volume now stands at 20%, while Ethereum follows at 8%. The surge in trading volume was driven by investors’ confidence in the court’s favorable decision, which clarified XRP’s status and distinguished it from other cryptocurrencies.
Stuart Alderoty, Ripple’s Chief Legal Officer, hailed the court’s ruling as a “huge win.” The verdict reinforced that XRP sales on exchanges were not considered securities, further bolstering XRP’s standing in the market. As a result, many analysts and experts have turned bullish on the cryptocurrency, projecting significant growth potential.
Notable crypto analysts have weighed in on XRP’s future prospects. One analyst predicts an explosive price increase, envisioning XRP’s value reaching $6.
On the other hand, analyst Michaël van de Poppe sees a potential dip to approximately $0.65, which he considers a necessary stage before a bullish resurgence. His analysis indicates that XRP could potentially rally to a high of $0.90 following this dip.