Polkadot (DOT) overtakes XRP in market cap and becomes the fourth-largest cryptocurrency, according to CoinMarketCap. XRP is going down since the launch of lawsuit against Ripple by the Securities and Exchange Commission.
The DOT token has experienced a growth of 61% over the week thanks to investors who are taking interest in the project. Currently, Polkadot’s DOT is exchanging hands at $15 after surging by 4% over the last 24-hours.
Market Cap Surpasses $13 Billion
The token has witnessed a sharp increase in market cap from $10 billion two days ago to a current value of more than $13 billion. The protocol, Polkadot, is designed to connect multiple blockchains and DOT is the native token used to tackle governance issues on the network. It was originally founded by Jutta Steiner and Gavin Wood in 2019.
Binance, the largest crypto exchange by volume, has shown a keen interest in the project. It is recently reported that Binance has dedicated $10 million funding for the operational projects running under the Polkadot. Interestingly, DOT token has taken the position of Ethereum coin on the homepage of the exchange which shows Binance is the biggest supporter of Ethereum’s competitor.
However, it is very difficult to overturn Ethereum’s market cap but DOT has become victorious in taking down XRP from the forth rank.
Crackdown on XRP
XRP has been facing losses in price value as it has plunged by 11.66% in the past 24-hours. At press time, the coin is exchanging hands at $0.28 after losing 2.70% of its value in the previous 24-hours. Its market cap stands is standing below $13 billion.
The major cause of XRP’s price downfall is the ongoing legal battle between Ripple’s top leadership and the Securities and Exchange Commission.
The SEC devised a $1.3 billion lawsuit against Ripple Lab and its top executives including Chris Larsen and Brad Garlinghouse. The US regulator has also accused them of taking profit after selling tokens in large amounts.
Since the opening of lawsuit, various cryptocurrency exchanges have removed XRP from their trading list. Majority of the US-based cryptocurrency exchanges have decided to delist the coin because it now an unregistered security. They can also face legal pressure if they continue trading of security which is not regulated by the US authorities.
Largest digital asset manager Grayscale has terminated its XRP Trust this week. Similarly, crypto exchange Kraken will stop XRP trading on January 29.