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- Binance.US shared an update on XRP’s origins and technology, boosting interest in the cryptocurrency.
- Ripple’s recent legal victory against the SEC led to a 30% price increase for XRP.
Binance.US, the American arm of the global cryptocurrency exchange, recently reignited enthusiasm within the XRP community by sharing key insights about the digital asset. This comes on the heels of Ripple’s notable legal win against the U.S. Securities and Exchange Commission (SEC), which has significantly influenced market sentiment.
In a detailed overview shared on its platform, Binance.US explained the history and the technical background of XRP. As stated in the exchange, XRP was launched in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto and is managed by the XRP Ledger Consensus Protocol.
While Bitcoin uses proof of work, XRP uses the consensus mechanism, which is more efficient in processing 1,500 transactions per second throughput. This scalability and efficiency have made XRP popular in the market, especially as the market considers the possibility of an XRP-based Exchange Traded Fund (ETF).
Get a quick scoop on $XRP with these fast facts. pic.twitter.com/MYzgvXET4S
— Binance.US 🇺🇸 (@BinanceUS) August 14, 2024
Ripple’s Legal Victory Boosts Market Sentiment
The exchange’s insights were released shortly after Ripple’s court victory, which only served to fuel the community’s optimism around XRP’s potential. On August 7, Ripple came out on top with a court order that forced the company to pay $125 million to resolve the case, thus putting a lid on a saga that had raised questions over XRP for years.
Following the ruling, XRP saw a significant price hike, climbing more than 30% and returning to levels not seen since April. This increase is due to increased investor interest in the asset as the recent court ruling regarding regulation has lifted a major cloud of uncertainty. However, the upward movement has been capped, pointing to the market’s cautious attitude toward the new reality after the ruling.
XRP ETF Speculation Grows Following Regulatory Clarity
Ripple’s court victory has also given the much-needed legal certainty to such speculations regarding the launch of an XRP-based ETF. Some recent events, such as introducing XRP/USD futures contracts on Bitnomial Exchange, have fuelled such speculations. These contracts that are physically delivered and margin-based represent the value of 100,000 units of XRP and are a step forward in democratizing the market and making it more liquid.
In parallel with the legal developments, on-chain metrics show changes in XRP’s market dynamics. Data from Santiment shows that the number of XRP tokens held in exchanges has been on the decline, which may indicate that investors are holding with the expectation of higher prices.
This trend is regarded as a bullish sign since the increase in the number of addresses indicates the improvement of the readiness of holders.
Looking at the holdings distribution, it is evident that retail investors, especially those with 10,000 XRP or less, have been accumulating the token. This increase in retail participation shows the base of individuals who hold XRP as they look for possible gains in the asset price. On the other hand, the number of accounts holding between 1 Million and 100,000,000 Million XRP is decreasing, which indicates that some so-called ‘whales’ are selling their coins.
As of this writing, XRP is trading at $0.5682, up 1% in the past 24 hours.
