XRP daily volume surges 18-fold following court ruling and exchange relistings
Quick Take
- The 24-hour trading volume of XRP increased 18-fold, from $613 million to $11.2 billion between July 13 and 14.
- XRP’s value increased by 85% after the ruling, from $0.47 to $0.87, though it has since receded slightly to $0.78.
The cryptocurrency XRP witnessed a remarkable surge in trading volume on Thursday, following a federal court ruling stating that some “programmatic” transactions of the digital asset did not constitute the sale of securities. This decision has opened the doors for exchanges to relist the asset after over two years.
According to data from CoinGecko, the 24-hour trading volume experienced a dramatic surge, jumping from $613 million to $11.2 billion between July 13 and 14, representing an 18-fold increase within a single day.
The mixed ruling was handed down by the Southern District Court of New York in the ongoing lawsuit between the Securities and Exchange Commission and XRP developer Ripple Labs. This lawsuit initially resulted in many U.S.-based cryptocurrency exchanges halting trading of XRP at the end of 2020. The future of the lawsuit remains uncertain, as the case may now go to trial.
In reaction to this development, crypto exchange platforms including Coinbase, Kraken and Crypto.com have opted to relist the asset. Similarly, Gemini, another major player in the market, announced that it was exploring the possibility of relisting XRP.
The market’s reaction was swift and dramatic. XRP’s value appreciated by 85% after the ruling was announced, rallying from $0.47 to $0.87 within a span of three hours on Thursday. Although the token’s price subsequently receded slightly, it currently trades at $0.78.
RELATED INDICES
XRP-USDT market | Source: Binance (via Tradingview)
Additionally, XRP’s market capitalization saw a boost to $40.8 billion in the past 24 hours. This rise has positioned XRP as the fourth largest cryptocurrency in terms of market capitalization, trailing only behind Bitcoin (BTC), Ether (ETH) and Tether USD (USDT).
In the derivatives market, data from CoinGlass shows that the aggregated volume-weighted derivatives funding rates have climbed to the highest level for the year, at 0.014% globally. When the funding rates increase, it typically indicates that there are more traders holding long positions, which means more traders are betting on the price to increase. Meanwhile, the open interest for XRP derivatives currently stands at $1.08 billion, also the highest for the year.
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