- On digital asset exchanges, demand for XRP is increasing again, said crypto analytics company Kaiko.
Demand for XRP is back, according to Kaiko, following a protracted legal battle with the U.S. Securities and Exchange Commission (SEC) that finally resulted in a decision that XRP sold on exchanges does not qualify as a security.
After Ripple Labs won a partial victory over the SEC in a historic court ruling last year, there has been a steady increase in demand for XRP in US markets. The share of US platforms in worldwide XRP volume has climbed from less than 2% to 14% over the past year, matching levels from before the SEC complaint.
Kaiko claims that traders’ pent-up desire has grown following the ruling because big exchanges were unable to permit XRP trading during the lawsuit.
The summary judgment declared that although direct sales to institutional investors qualified as securities transactions, Ripple’s XRP sales through secondary trading platforms did not. Pent-up demand from US traders was released when XRP was relisted on many US exchanges, including Coinbase and Gemini, in the wake of the verdict. The protracted legal dispute between Ripple and the US SEC keeps XRP volatile.
In contrast, Kaiko notes that XRP’s price gains in July exceeded those of Bitcoin (BTC) by 35% to 9%, primarily due to rumors of an SEC settlement.
After the SEC revised its lawsuit against Binance and set a closed-door meeting for August 1st, speculation increased. Prices decreased as a result of the meeting’s cancellation, though.
At the time of writing, XRP’s value is $0.490, down 18% from the previous week as the markets crashed along with it. Bitcoin’s value has decreased by 19% in the same time frame to $54,688.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
