Ripple Effect: XRP zooms 25% as concerns over legal conundrum ease

Ripple's native token XRP has been high in demand among investors, thanks to the possible outcome over its lawsuit against US Securities and Exchange Commission (US SEC).

The altcoin has zoomed about 25 per cent in the last 24 hours, with its volume jumping 160 per cent as the tokens worth $5.52 billion exchanged hands during the period under review, the data from Coinmarketcap suggests.

The token has jumped more than 60 per cent in the last one month to hit a high of $0.9111 on Tuesday. The token is still trading about 50 per cent of its one year's peak of $1.83 scaled in April 2021.

The recent rise has pushed its marketcap to about $42 billion, placing it at the sixth spot, ahead of Cardano and Solana, among the all crypto assets in terms of valuations.

The ongoing investigation from US SEC is concluding soon and the wind is blowing favourably for Ripple.

XRP price rise can be attributed to the news reports signaling closure of a long impending lawsuit, initiated in December 2020, between Ripple and US Securities and Exchange Commission, said Sharat Chandra, VP- Research and Strategy, EarthID.

Regardless of the outcome, the lawsuit is expected to determine the precedent whether a cryptocurrency is a security, he said. "Many legal luminaries believe that the SEC is on a weaker ground and Ripple, most likely, will get a ruling in its favor."

US SEC alleges that Ripple executives raised more than $1.3 billion through an unregistered digital-asset securities offering using XRP.

The number of transactions on RippleNet more than doubled, with a payment volume run rate of over $10 billion. RippleNet continues to see more global demand for the product.

This is a testament to the product considering Ripple parted ways with Moneygram, its largest customer, immediately after the SEC filed its lawsuit against Ripple.

Ripple Labs continues to expand its partnerships and customer base for its RippleNet blockchain technology for global payments, said Raj A Kapoor of India Blockchain Alliance.

If you look at 2021, it was RippleNet’s most successful and lucrative year to date as global momentum skyrocketed with customer demand despite the headwinds from the SEC, he added.