The first week in crypto for the year 2023 wasn’t exactly a great week with the digital asset investment products seeing net institutional outflows of $9.3 million. However, Ripple’s own cryptocurrency XRP managed to buck the trend, recording $3 million in net inflows last week.
On Monday, January 9, CoinShares reported that this could be amid increasing clarity in the Ripple-SEC battle. The report notes:
XRP bucked the trend with inflows totaling US$3 million, representing 9% of total assets under management. We believe that the increasing clarity of the SEC litigation is seen by the investment community as increasingly favorable to XRP.
In addition, whales have contributed in large numbers, making XRP one of the most traded cryptocurrencies in the market. Ripple’s native crypto XRP has emerged as one of the most traded tokens in the top 100 BSC whales. Amid the recent price surge, crypto whales have recently moved a total of 480 million XRPs.
What will happen to XRP if Ripple loses its case with the SEC?
Currently, Ripple has the edge in its legal battle with the SEC. Market experts also believe the case will be finalized this year in 2023, and mostly in favor of Ripple.
Lawyer Jeremy Hogan, who closely follows the Ripple case, shared his thoughts on what if Ripple is in danger of losing the case with the SEC. His opinion came as part of the response to Michelle Nightengale, the CEO of the Global Institute of Wellness Entrepreneurs.
Hogan noted that if Ripple loses the case, XRP could lose some of its utility. In his response, Hogan noted: “The US accounts for 25% of global economic activity, so, as a rough estimate, XRP would be 25% of its utility.”
Moreover, in this case against the SEC, many see Ripple as representing the entire crypto space. So any failure could certainly lead to market-wide negative sentiment. At the time of writing, XRP is trading at a price of $0.34 and a market cap of $17.5 billion. Despite the legal battle, XRP maintains its position among the top ten digital assets.
Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is constantly in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post XRP remains the favorite of institutions despite legal battles with SEC
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