Why is the price of Ripple (XRP) rising today?

TL;DR

The value of XRP increased by almost 40% in a week, possibly driven by increased transaction activity on the network. Anticipation of a resolution in Ripple’s legal battle with the SEC may have also contributed to the recent price rally.

XRP on Fire

The cryptocurrency market has witnessed a significant comeback in recent days, with numerous leading digital assets hitting multi-month highs. Bitcoin (BTC), for example, touched the $66,000 mark a few hours ago, while Ethereum (ETH) briefly topped $3,500.

Ripple’s XRP has performed even more impressively, with its price rising nearly 40% on a weekly basis. It is up 9% on the day, hitting the $0.60 level for the first time since April.

XRP Price, Source: CoinGecko

Its resurgence coincides with the resurgence of some important metrics that are part of its ecosystem. The total number of trades executed, for example, exceeded 4 million on July 16, a six-month high.

The average number of transactions per ledger reached 204: 250% more than the figure seen at the beginning of the month.

More transactions on the XRP Ledger indicate increased usage and utility of the network, which could lead to greater demand for the asset and greater inflow of capital.

The impact of the case Ripple v SEC

Rising expectations that the legal battle between Ripple and the US Securities and Exchange Commission (SEC) is coming to an end could be another factor driving XRP’s value.

US attorneys Fred Rispoli and Jeremy Hogan are among those speculating that an official resolution could come as early as this summer.

The lawsuit has been ongoing for more than three and a half years, with some seeing the SEC as the underdog due to three partial court victories secured by Ripple throughout 2023. Just over a year ago, the judge Torres ruled that its programmatic sales on the secondary trading platforms do not constitute offers of investment contracts.

The price of XRP shot up more than 70% within hours of the announcement. The asset reacted positively after two other victories: when magistrates dismissed the regulator’s intention to appeal the decision and when CEO Brad Garlinghouse and executive chairman Chris Larsen were cleared of all charges brought against them by the Commission.

Those curious to learn more about the details of the case and its potential impact on the value of XRP, feel free to check out our dedicated video below:

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!