- Ripple-backed XRP is the only top ten digital assets by market capitalization to post a double digital percentage in profits.
- The SEC continues to hold its ground that most of the digital assets with, exceptions for Bitcoinz, are unregistered securities.
The XRP market has been gaining more global traction despite the increased headwinds due to the ongoing lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple Labs. According to the latest crypto market data, XRP price gained about 3 percent on Wednesday, whereas other top digital assets were down by a similar percentage. As a result, XRP price gained about 14 percent in the past seven days, which could help the instrument close the month on a bullish outlook.
XRP On-Chain Analysis
The XRP market has experienced heightened demand as depicted by the increased daily trading volume. In the past 24 hours, the XRP market recorded a total trading volume of about $2.5 billion, higher than BNB, Cardano (ADA), and Dogecoin (DOGE) combined. The number of XRP on-chain transactions per day has been on the rise in the past few weeks, standing around 1,226,701 on Wednesday.
According to a recent report by on-chain analytics platform Santiment, the XRP address activity has spiked to the second largest of all time. As a result, Santiment noted the XRP market has been slowly decoupling from the altcoin industry.
As a utility-based token, the XRP market is significantly pegged to the success of Ripple Labs. From a broad-term standpoint, Ripple has made significant progress in developing the XRP market in the past years. Moreover, XRP has significantly been adopted by institutional investors seeking to tap into Ripple’s cross-border payment solutions.
However, Ripple has been blamed for holding a huge XRP bag amounting to nearly half of the entire supply. At the end of every month, Ripple receives a billion XRP from the escrow wallet, which it uses to encourage institutional investors to adopt its cross-border payment services.
Incidentally, the ongoing SEC vs Ripple lawsuit is centered around the same topic, where the United States regulator accuses the blockchain company of selling unregistered securities. In recent revelations, Ripple CEO Brad Garlinghouse stated that the company has spent about $200 million in fighting the SEC in the past two years.
The Ripple CEO also noted that the ongoing lawsuit is on the cusp of ending, which has increased the thrill in the XRP community. Meanwhile, Ripple counted an interim win after Judge Analisa Torres recently ruled that Hinman’s documents can be made publicly available.
Notably, Hinman’s documents have been used by Ripple to show the double standard the SEC is putting on crypto companies in the United States. Back in 2018, Hinman, who was a former high-remaking SEC official stated that Ether is not a security.
However, Gary Gensler, the current SEC chair, has argued that almost all digital assets are unregistered securities apart from Bitcoin.
The XRP price has been consolidating in a triangle pattern on the higher time frame. However, the end seems very close to an imminent breakout on either side.
However, the bulls have the upper ground and could push the XRP price to the new ATH.