The native token of the XRP Ledger, known as $XRP, has carved a prominent niche in the cryptocurrency market. With a substantial price rise of over 60% within a single week, XRP now accounts for a remarkable 21% of the market’s trading volume globally, surpassing even Bitcoin. This development has notable implications for South Africa’s growing cryptocurrency sector, where Bitcoin has traditionally held the lead.
The surge in XRP’s trading volume is largely attributed to a significant legal victory for Ripple, a key entity within the XRP ecosystem, in its ongoing legal conflict with the U.S. Securities and Exchange Commission (SEC). In a recent turn of events, a federal judge in New York ruled that the XRP token “is not necessarily a security on its face,” a judgement that has propelled XRP’s trading volume to new heights.
Prior to this ruling, Bitcoin was the most liquid asset in the digital currency market, with its trading volume making up 20% of the market. However, XRP’s rise has now shifted Bitcoin into second place. Ethereum, another leading cryptocurrency, stands at 8% trading volume, further underlining XRP’s lead in this aspect.
The legal quarrel between Ripple and the SEC began in 2020 when the commission instigated a lawsuit, alleging that Ripple violated U.S. securities laws by selling XRP without the correct registration. Judge Analisa Torres, in her latest ruling, stated that while XRP might have been deemed a security when sold to institutional investors in the past, it did not hold the same status when sold to the general public via crypto exchanges.
Ripple’s Chief Legal Officer, Stuart Alderoty, took to social media to express his jubilation, heralding the verdict as a “huge win.” The distinction between exchange sales and securities has played a pivotal role in this outcome.
In the wake of the favorable legal ruling, numerous analysts have turned bullish on XRP. One well-known crypto analyst has even predicted a potential price surge to ZAR 107.28 ($6), underlining the pervasive optimism surrounding the cryptocurrency.
Yet, another analyst, Michaël van de Poppe, offers a slightly divergent viewpoint. While he predicts a possible dip to around ZAR 11.62 ($0.65), he sees this dip as a potential springboard for a bullish recovery. Van de Poppe’s analysis suggests that XRP could potentially hit a high of ZAR 16.09 ($0.90) in the post-dip rally.
The legal victory and the resulting surge in XRP’s trading volume have solidified the token’s position as a major player in the cryptocurrency market. As XRP continues to gain momentum and draw increased investor interest, its future prospects appear promising. For South African investors and crypto enthusiasts, this shift in global market dynamics presents an opportunity to diversify their portfolios and explore alternative investment options.