The XRP price fell sharply during the August 17 crash. Almost everything crypto The industry saw red wherever Ripple coin suffered terribly. The coin has thus reached a value that almost corresponds to the price before Ripple’s partial victory. With the price drop and a huge drain of XRP, the hype surrounding the lawsuit seems to be almost over.
Ripple’s huge outflow seems to signal the end of the hype
On Thursday, the value of XRP fell from $0.575 to $0.486 in a very short time. Currently, the coin is oscillating around $0.52 after an upward correction Support I have found at $0.50. The trading volume is according to CoinMarketCap more than 64% lower than 24 hours ago.
At the time of writing, the market cap is around $27.4 billion. That’s significantly less than just after Judge Torres’ affirmative ruling in the Ripple lawsuit. Then she made her decision that XRP is not a security if it is resold Exchange. Following the ruling, the market cap peaked at $42.89 billion on July 14.
Since the coin was hyped shortly after the verdict, $15.5 billion has already left the XRP market. Investors appear to have lost faith in cryptocurrency until recently bullish lose the exchange rate of the currency. Finally, the litigation is still ongoing and XRP has been partially referred to as a security. Given the huge outflow, the price drop and the great uncertainty, it seems that there is not much left of the hype.
Years of crypto lawsuits will continue for a while
Ripple was sued by the US in December 2020 Securities and Exchange Commission (SEC). This regulator has a long history of suing crypto industry companies. The government agency feels compelled to do so as it classifies various cryptocurrencies as “EffectsSee what they are responsible for.
Recently, the judge handling the Ripple vs. SEC case ruled that XRP is not a security when sold on exchanges. When Ripple sold it directly to investors, the coin was a security. It was a predicted and characterized “split-the-baby” verdict in which both sides are partially correct.
However, the SEC’s appeal request has since been filed approved. The litigation appears to have come to an end. The litigation has been going on for years, so it is possible that this final phase of the litigation will take several months. Ripple’s chances, on the other hand, appear to be significantly better with the recent win.