- Demand for XRP is rebounding on cryptocurrency exchanges, as reported by crypto analytics company Kaiko.
- The ongoing legal developments between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have played a significant role.
- According to Kaiko, U.S. platforms’ share of global XRP volume has significantly increased, reaching levels seen prior to the SEC’s lawsuit.
Discover the resurgence of XRP demand and its implications in the cryptocurrency market.
Ripple Labs’ Legal Battle with the SEC and its Impact on XRP Demand
Since a key court ruling last year that partially favored Ripple Labs in its dispute with the SEC, there’s been a steady rise in demand for XRP in U.S markets. The share of U.S. exchanges in global XRP volume has surged from below 2% to an impressive 14% over the past year. This marks a return to levels witnessed before the SEC’s lawsuit against Ripple Labs commenced.
Relisting of XRP by Major Cryptocurrency Exchanges
The temporary prohibition on XRP trading by leading exchanges during the lawsuit led to significant pent-up interest among traders. Following the court’s decision, several prominent U.S. exchanges, including Coinbase and Gemini, reinstated XRP trading, triggering a resurgence in trader activity. While the summary judgment clarified that secondary market sales of XRP are not securities transactions, it maintained that direct institutional sales could be. This ongoing legal saga sustains XRP’s volatility in the market.
XRP’s Performance Amidst Legal Speculation
Amid speculation surrounding a potential SEC settlement in July, XRP’s price performance outstripped that of Bitcoin, with XRP experiencing a 35% gain compared to Bitcoin’s 9%. However, the postponement of an SEC closed-door meeting scheduled for August led to a subsequent decline in prices. As of the latest figures, XRP’s value stands at $0.490, an 18% drop in the past week, mirroring the broader market downturn where Bitcoin too has seen a 19% decrease, currently valued at $54,688.
Conclusion
In conclusion, the demand for XRP has seen a substantial recovery following last year’s pivotal court ruling in favor of Ripple Labs. The ruling not only instigated a supply and demand shift but also reinvigorated trader interest on major U.S. exchanges. Despite the persistent volatility driven by ongoing legal uncertainties, which include potential SEC settlements, the current market dynamics suggest a revitalized interest in XRP. Investors should stay informed and exercise due diligence as this legal battle further unfolds.
