XRP’s Triumph Over SEC May Reshape Crypto Landscape – Study
Following the prolonged Ripple-SEC legal tussle, Judge Torres delivered the latest verdict in favor of Ripple against the U.S. Securities and Exchange Commission (SEC). Accordingly, a new study by CCData has revealed that the landmark ruling has the potential to revolutionize the digital assets landscape, particularly how they are classified within the purview of United States regulators.
What The Future Holds For Crypto
Recently, CCData, a renowned provider of up-to-the-minute institutional-grade market data for digital assets, released an insightful blog post highlighting the positive effects of the recent court ruling on the crypto space. According to the platform, this landmark decision has injected a fresh wave of optimism into an industry grappling with regulatory challenges.
As a result, CCData revealed that the latest development would set a precedent that could impact similar legal cases and restore confidence among industry participants. CCData further predicts that the ruling may attract increased liquidity to the crypto industry as market makers perceive reduced risks associated with these assets.
According to various on-chain data, XRP’s price experienced a significant surge following the court ruling. The crypto asset attained an impressive peak of $0.93, marking its highest value since May 2021, and closed at $0.82, reflecting the market’s positive response to the court ruling.
The announcement also sparked a remarkable spike in trading activity, as XRP trading pairs on centralized exchanges witnessed an extraordinary surge in volume. XRP’s total trading volume reached a staggering $6.05 billion, exhibiting an astonishing 1351% surge compared to the previous day.
Additionally, other tokens like Cardano and Solana, which had previously been labeled as securities by the SEC, also saw a remarkable rise in their prices following the ruling. Furthermore, CCData’s analysis indicates that the extraordinary surge in trading volumes can be attributed to the decision of prominent centralized exchanges like Coinbase, Gemini, and Kraken to relist XRP on their trading platforms.
Hence, the study suggests this event was pivotal in triggering market interest and enthusiasm around the XRP token.
XRP Stands Tall
Despite the legal complexities and uncertainties from the lawsuit, XRP has shown remarkable liquidity throughout the year. This resilience displayed by the token’s liquidity could be a notable indicator of the perceived risk associated with market-making activities on the XRP pair.
Meanwhile, the potential grouping of XRP as a security could amplify this perceived risk, as it would introduce additional regulatory considerations and potential limitations for market participants. Nevertheless, an analysis of CCData’s Orderbook data reveals that the court ruling surprised most speculators, as a significant number of orders were concentrated within a narrow price range of around $0.45 before the announcement.
After the judgment was announced, there was a wave of buy orders for the asset, leading to a substantial price increase from $0.60 to $0.95. Examining the derivatives market, it is noteworthy that XRP maintained a positive funding rate, which CCData attributes to the ongoing positive market sentiment following the ruling.
This event spurred a significant surge in Open Interest across various crypto exchanges, rising to three times the baseline level observed before the announcement. Accordingly, CCData emphasizes that the spike in Open Interest is evidence of the widespread positive speculation surrounding XRP, as market participants eagerly await the potential outcomes and implications of the court ruling.
In its assessment, CCData noted that the groundbreaking verdict provides much-needed clarity to the digital asset ecosystem and has the potential to reshape industry dynamics. The implications of this ruling are far-reaching, as it could lead to an upswing in the value of coins classified as securities and challenge the market dominance of Bitcoin (BTC).
CCData further suggests that this landmark decision might cause a re-evaluation of the SEC’s regulatory approach. In its conclusion, the study stated that the ruling could shift away from a strict “regulation by enforcement” strategy towards a more comprehensive framework that fosters innovation while ensuring investor protection.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
