The native token of the XRP Ledger, $XRP, has rise not the top of the cryptocurrency space when it comes to trading volume, now accounting for a stunning 21% of the market’s volume amid a price explosion of over 60% in a single week.
According to Kaiko, XRP’s trading volume exploded after a federal judge in New York determined that the XRP token “is not necessarily a security on its face” in the legal battle between Ripple, a major player in the XRP space, and the U.S. Securities and Exchange Commission (SEC).
The rise means XRP’s trading volume has grown past that of the flagship cryptocurrency Bitcoin, the most liquid asset in the digital currency space, whose trading volume now accounts for 20% of the market, while Ethereum stands at 8%.
The SEC sued Ripple back in 2020 for alleged violation of U.S. securities laws, arguing that the firm sold XRP without prior registration with the agency. Judge Analisa Torres has last week ruled on the lawsuit, that XRP was a security when Ripple sold it to institutional investors years ago, but not to the public.
The judge’s main argument was that institutional investors who bought XRP from Ripple in the past probably knew it had some features of a security, while investors who got XRP from crypto exchanges didn’t have the same information.
Ripple’s Chief Legal Officer, Stuart Alderoty, said on social media the decision was a “huge win,” as sales on exchanges aren’t considered securities.
Various analysts have been bullish on the cryptocurrency after the ruling came out, with a popular crypto analyst recently revealing he sees the cryptocurrency’s price explode to $6.
Earlier, analyst analyst Michaël van de Poppe focused on XRP saying he envisions a potential downward adjustment to approximately $0.65. This dip, however, is not cause for concern, as Van de Poppe believes it could set the stage for a bullish resurgence. According to his analysis, the post-dip rally could escalate XRP’s value to a high of $0.90.
Featured image via Pixabay.