The XRP price fell sharply during the August 17 crash. Almost the entire crypto industry saw red, which also affected Ripple’s coin. With this, the coin has reached a value that is almost equal to the price before Ripple’s partial victory. With the price drop and a huge outflow of XRP, the hype surrounding the lawsuit now seems to be almost over.
Huge outflow for Ripple seems to mean end of hype
On Thursday, the value of XRP fell from $0.575 to $0.486 within a very short time. Currently, the coin is hovering around $0.52 after correcting to the upside and finding support at the $0.50 level. The trading volume is according to CoinMarketCap more than 64% lower than 24 hours ago.
At the time of writing, the market capitalization is around $27.4 billion. That is considerably less than just after the positive ruling of judge Torres in the Ripple lawsuit. She then decided that XRP is not a security when sold on exchanges. Following the ruling, the market cap reached a high of $42.89 billion on July 14.
Since the huge hype surrounding the coin just after the ruling, $15.5 billion has already left the XRP market. Investors seem to be losing faith in the currency’s bullish price until recently. After all, the lawsuit is still ongoing and XRP was partially called a security. With the enormous outflow, the price drop and the great uncertainty, there seems to be not much left of the hype.
Years of crypto lawsuit will continue for a while
Ripple was sued by the US Securities and Exchange Commission (SEC) in December 2020. This watchdog has been suing companies within the crypto industry for a long time. The government body feels compelled to do so, as they view various crypto as “securities” over which they have jurisdiction.
Recently, the judge dealing with the Ripple vs SEC case ruled that XRP is not a security when sold on exchanges. During the direct sale by Ripple to investors, the coin was a security. It was a predicted and characterized “split-the-baby” ruling, where both sides are partially right.
However, the SEC’s application for an appeal has now been approved. The lawsuit seems to have reached a tail end with this. The litigation has been going on for years, so it is possible that this final phase in the lawsuit will take several months. The chances for Ripple, on the other hand, seem a lot better with the recent victory.
2023-08-19 18:39:27
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