In a long-awaited decision, Judge Torres ruled in favor of XRP in its case against the US Securities and Exchange Commission (SEC) yesterday. The verdict is a positive development for the cryptocurrency industry, particularly with a focus on whether digital assets should be considered securities in the US.
The ruling is expected to set a precedent for the industry to move forward. This is a positive for both altcoins and the industry in general, as the default expectation is that these assets are not considered securities as long as they are available to the public.
This event is likely to have broader implications for ongoing legal cases and may help rebuild trust in the industry for developers and bring more liquidity to the ecosystem.
XRP defies expectations with massive price surge and surge in trading volume
Following the news, XRP saw a surge in price, reaching $0.93, the highest price since May 2021, and closed at $0.82.
According According to data compiled by research firm CCData, the news led to an influx of trading activity, with XRP trading pairs on centralized exchanges (CEXs) posting total volume of $6.05 billion on the day, an increase of 1,351. % since the previous day.
The relisting of the asset on other centralized exchanges, including Coinbase, Kraken and Gemini, also contributed to the increase in volumes.
The news surrounding the ruling also generated daily gains of almost 100% for XRP, with other tokens such as Solana (SOL) and Cardano (ADA), recently considered securities, posting significant gains of 35% and 28%, respectively.
Despite the negative backdrop that XRP has faced due to demand, its depth of market liquidity at the 1% level has remained resilient year to date (YTD). The 1% XRP bid/ask side depth at the Yearly Open was 26.5 million XRP, which was up 0.41% year-round and remained strong at 25.1 million XRP on July 12.
Derivatives data show positive sentiment
According to the report, derivatives data indicates that XRP’s positive funding rate has been stable over the past few days, in line with the overall positive market sentiment.
The news of the lawsuit generated a significant increase in speculative interest on the supply side, with open interest rising by $280 million, from $635 million to a high of $913 million across all exchanges. Additionally, funding rates hit over 0.03% across all exchanges, more than three times their benchmark level of less than 0.01% prior to the announcement.
On the other hand, XRP funding rate history shows that speculators trading perpetual contracts have been favoring the upside, with a low time this year in negative funding rate territory.
This underlines the positive sentiment from traders for XRP, which was recently rewarded with a large price increase due to the announcement. While it remains to be seen if XRP will maintain its extremely positive funding rate, it is currently a good standard for measuring positive sentiment within altcoins, given the attention and volume it is generating.
Given the success of the lawsuit, the implications for the market are overwhelmingly positive and the ruling provides a clarity that was not available prior to the judgment.
According to CCData, the market could see some trends emerge, such as currencies considered securities that are recovering well and potentially outperforming and the potential for Bitcoin’s dominance to fall as an overall percentage of market capitalization, given renewed optimism. in altcoins.
XRP drop on the 1-day chart. Source: XRPUSDT on TradingView.com
Despite the recent surge in positive sentiment and renewed investor confidence, XRP has seen a significant price drop. After coming close to hitting the $1 mark, which it hasn’t seen since November 2021, XRP is currently trading at $0.7002, marking a decline of more than 11% in the last 24 hours.
Featured Image from Unsplash, Chart from TradingView.com
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