The XRP Ledger’s native token, XRP, has risen to the top of the cryptocurrency field in terms of trading volume, now accounting for a staggering 21% of the market’s volume amid a price explosion of more than 60% in a single week. According to Kaiko, XRP’s trading volume skyrocketed when a federal judge in New York ruled that the XRP token “is not necessarily a security on its face” in the legal struggle between Ripple, a significant player in the XRP area, and the United States Securities and Exchange Commission (SEC).
The increase means that XRP’s trading volume has surpassed that of Bitcoin, the most liquid asset in the digital currency ecosystem, whose trading volume now accounts for 20% of the market, while Ethereum accounts for 8%.
The SEC filed a lawsuit against Ripple in 2020 for alleged violations of US securities laws, alleging that the company sold XRP without first registering with the agency. Judge Analisa Torres decided on the complaint last week, ruling that XRP constituted a security when Ripple sold it to institutional investors years ago, but not to the general public.
The judge’s key point was that institutional investors who bought XRP through Ripple in the past undoubtedly recognized it had some security features, whereas investors who bought XRP from crypto exchanges didn’t. Stuart Alderoty, Ripple’s Chief Legal Officer, remarked on social media that the judgment was a “huge win,” because purchases on exchanges aren’t deemed securities. Following the judgment, various analysts have been positive on the cryptocurrency, with one renowned crypto analyst recently saying that he believes the cryptocurrency’s price will skyrocket to $6. Earlier, expert Michal van de Poppe focused on XRP, predicting a likely downward adjustment to around $0.65. This decline, however, is not cause for fear, according to Van de Poppe, because it could pave the way for a positive recovery. According to his analysis, the post-dip bounce might push the value of XRP to $0.90.