• XRP’s daily trading volume has recently surpassed that of Bitcoin and Ethereum following Ripple’s win in a legal battle against the US Securities and Exchange Commission (SEC).
• This has caused the native token of Ripple to soar by over 55% in the past four days and its market cap to rise to more than $38 billion.
• Analysis from Kaiko shows that trades involving XRP represent 21% of the total crypto trading volume, with BTC coming in second at 20%.
XRP Overtakes Bitcoin in Trading Volume
XRP – the native token of Ripple – has experienced a surge in its trading volume following a landmark win for Ripple against the US Securities and Exchange Commission (SEC). The digital asset data provider Kaiko reported that XRP trades have comprised 21% of the total crypto trading volume, leaving BTC in second position with 20%. This success has caused XRP to soar by over 55% in the past four days, with its market cap rising to more than $38 billion.
Ripple’s Legal Battle With SEC
Ripple’s court victory acted as a catalyst for the organization’s native token, which had previously been valued at approximately $25 billion prior to the judge’s decision. The case was brought about due to alleged violations of federal securities laws, however Ripple successfully argued that XRP is not an investment contract or security and should not be regulated as such. This allowed exchanges such as Coinbase, Kraken, Crypto.com, and Bitstamp to re-launch trading services with XRP only hours after winning their case against the SEC.
Surge In Crypto Trading Volume
The recent analysis displayed by Kaiko showed that trades involving XRP represented 21% of the daily market share of cryptocurrency trading volume – ahead even of Bitcoin who ranked second at 20%, whilst Ethereum held 8%. One potential reason for this significant success could be attributed to massive support from multiple cryptocurrency exchanges.
Crypto Market Response To Win
The response from investors was overwhelmingly positive; at one point, XRP neared $1 as it became the fourth-largest crypto by market cap. Other cryptocurrencies also saw increases following news breaking out about Ripple’s win; Chainlink surged by over 40%, Cardano rose 24%, and Dogecoin jumped 11%; all signs indicating how good news can drive investor sentiment across multiple assets within a relatively short time frame.
In conclusion, it is evident that Ripple’s legal battle with SEC catalyzed an increase in trade volumes for both XRP itself but also other cryptocurrencies due to investor sentiment being positively affected across multiple assets within a short period of time.