- Kaiko’s analysis showcases a spike in XRP buying demand in the US, notably on Coinbase, following Ripple’s partial win against the SEC.
- Korean and Seychelles-based exchanges observed strong XRP selling pressure in August.
Understanding XRP’s Market Behavior Post SEC Verdict
In the unpredictable realm of cryptocurrency, even landmark legal victories don’t guarantee steady price hikes. Renowned digital asset research authority, Kaiko, sheds light on this through a meticulous exploration of XRP’s market behavior subsequent to its semi-triumphant court ruling against the U.S. Securities and Exchange Commission (SEC) in July 2023.
Based on data harvested from multiple cryptocurrency exchanges, Kaiko discerns a marked augmentation in XRP buying appetite, particularly from large US-based traders. Such demand was especially palpable on Coinbase, America’s premier crypto trading platform, which witnessed an appreciable surge in XRP acquisitions. Delving deeper, it’s evident that XRP’s average transaction volume on Coinbase eclipsed most in the altcoin echelon, Ethereum being the sole exception.
The inference? It’s plausible to contend that post the watershed July adjudication, institutional investors and prominent traders flocked to regain access to XRP, amplifying its demand in the US. However, an intriguing observation surfaces: Despite this surge, XRP‘s trade volume in the US doesn’t match its offshore trading activity. To quantify, while XRP might reign supreme in offshore markets, it occupies the sixth slot in terms of cumulative trade volume in the US.
The Backdrop: Ripple vs. SEC
For context, the SEC, in late 2020, initiated litigation against Ripple, positing that the San Francisco-centric payment juggernaut was marketing XRP as an undeclared security. Fast forward to July 2023, and District Judge Analisa Torres handed down a nuanced verdict. She adjudged that Ripple’s programmatic sales of XRP, essentially automated open-market transactions, weren’t tantamount to security offerings, thus countering the SEC’s contention. Conversely, she concurred with the SEC’s viewpoint that XRP sales targeting institutional clientele bore the hallmark of securities offerings.
Consequently, XRP’s price trajectory exhibited a remarkable elasticity, catapulting from approximately $0.47 to an impressive $0.82 high post-verdict. However, such gains proved ephemeral, with XRP’s market cap retracing most of its advancements, steadying at about $0.504 as of the latest data points.