July was an important month for Ripple (XRP). It won the long-standing lawsuit against the American Securities and Exchange Commission (SEC), causing XRP to almost immediately double in price from $0.47 to $0.82. Two weeks later, the price is lower, but stable at around $0.71 and things seem to have calmed down again. Is this just a temporary correction?
XRP trading activity is rising
Laiko, a crypto market data provider, reported that the interest rate ratio on XRP futures remains impressive, meaning a significant amount of trading activity and interest. This may indicate that traders and investors see potential in XRP despite the market’s volatility. In addition, Kaiko showed that the volume to open interest ratio above the median value. The latter is the ratio of trading volume to open interest on a given day. A high ratio may indicate strong speculative interest in the asset.
Ripple’s social dominance is rising
As the news of the court ruling got closer and closer, Ripple was also being discussed more and more on social media. The social dominance value of the project rose to 4% in the months of May and June. “Social dominance” in the context of cryptocurrencies refers to the extent to which a particular coin or token is discussed or mentioned on social media platforms in comparison to other cryptocurrencies. It is a measure that shows the influence or popularity of a cryptocurrency in the social media space. At the time of writing, this value stands at 2% and is a relatively high value. It indicates a large number of active supporters.
Although the hype seems to have returned, XRP is still in good shape. The ruling of the lawsuit clearly still has a positive influence and can be seen, among other things, in high activity on social media.