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- A crypto analytics firm disclosed that demand for XRP has been on the rise since it secured a partial win in July 2023.
- The planned SEC’s closed-door meetings scheduled in July and August reportedly boosted the asset’s price.
The multi-year legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs enters the remedies phase, during which appropriate penalties are expected to be imposed on the blockchain company for violations.
Pending the much-anticipated ruling, XRP has been resolute and maintained unwavering confidence in the face of the ongoing market “bloodbath.” At press time, the asset was trading at $0.51 after staging a massive recovery of 12% in the last 24 hours to leap above the $0.49 zone.
XRP Steady Growth Since Landmark Ruling Last Year
Throughout our coverage, a pivotal moment arrived last year when the court presided by Judge Analisa Torres ruled that XRP is not a security. According to crypto analytics firm Kaiko, the demand for XRP in the US market has increased since then. Per our data, there has been a 12% surge in the shares of US platforms in global XRP volume, matching the progress before the lawsuit.
Since last year’s landmark court ruling, which granted Ripple Labs a partial victory against the SEC, demand for XRP in US markets has grown steadily. The share of US platforms in global XRP volume has increased from less than 2% to 14% over the past year, matching levels from before the SEC suit.
Analysts believe that the growing demand for XRP stems from several US exchanges relisting the asset after the ruling. For context, many exchanges, including Crypto.com, Coinbase, and OKCoin, suspended the trading of XRP tokens in late December 2020 and early 2021 in response to the SEC’s complaint that Ripple executives ran a $1.3 billion unregistered offering.
With this, OKCoin disclosed that its decision to suspend XRP trading was based on closely monitoring the news surrounding the December 22, 2020, lawsuit.
Ripple’s Partial Victory Massively Boosted the Ecosystem
Fast-forward, things took a different turn when Ripple attained a partial victory, causing most of these exchanges to rescind their decisions. According to Kaiko, the ongoing legal battle continues to power the volatility of XRP.
The summary judgment stated that Ripple’s XRP sales through secondary trading platforms were not securities transactions, although direct sales to institutional investors were. Following the ruling, several US exchanges, including Coinbase and Gemini, relisted XRP, releasing pent-up demand from US traders. Ripple’s ongoing legal battle with the U.S. SEC continues to fuel XRP’s volatility.
In July, speculations of an SEC settlement accelerated the progress of XRP’s on-chain activities, with the price outpacing Bitcoin (BTC) with a 35% surge. As we reported, BTC saw an average surge of 6%, while Ethereum (ETH) declined by 3%.
In explaining this, Kaiko stated that the decision by the SEC to organize a closed-door meeting within the month triggered the price surge.
Speculation grew after the SEC amended its Binance complaint and scheduled a closed-door meeting for August 1st. However, the meeting was later cancelled, leading to a drop in prices.
The meeting was later rescheduled to August 1. However, a Crypto News Flash publication disclosed that the SEC also canceled it.
