In a long-awaited decision, Judge Torres ruled in favor of XRP in their case against the US Securities and Exchange Commission (SEC) yesterday. The ruling is a positive development for the cryptocurrency industry, especially with a focus on whether digital assets should be considered securities in the US.
The decision is expected to set a precedent for the industry moving forward. This is positive for altcoins and the wider industry, 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 wider implications for ongoing legal cases and may help rebuild industry confidence for developers and attract more liquidity to the ecosystem.
XRP Defies Expectations With Huge Price Surge And Growth In Trading Volume
After the news, XRP saw its price rise, reaching a high of $0.93, the highest price since May 2021, and closing at $0.82.
ACCORDING in data compiled by research firm CCData, the news led to a flurry of trading activity, with XRP trading pairs on the centralized exchange (CEX) recording a total volume of $6.05 billion on the day, a an increase of 1351% from the previous day.
Asset relisting on other centralized exchanges, including Coinbase, Kraken, and Gemini also contributed to the increase in volume.
The news surrounding the decision also led to almost 100% daily gains for XRP, along with other tokens such as Solana (SOL) and Cardano (ADA), which were recently considered securities, which saw significant gains of 35% and 28%, respectively.
Despite the negative backdrop XRP is facing due to the lawsuit, its market depth of 1% remains strong year-to-date (YTD). The 1% bid/ask side depth of XRP at the Yearly Open was 26.5 million XRP, which saw a 0.41% difference throughout the year and remained stable at 25.1 million XRP on the 12th of July.
Derivatives Data Shows Positive Sentiment
According to the report, Derivatives data shows that the positive rate of the XRP fund has remained constant over the past few days, in line with the broader positive market sentiment.
News of the lawsuit generated a significant increase in speculative interest on the bid side, with a $280 million increase in Open Interest, from $635 million to a high of $913 million in exchanges. In addition, funding rates reached 0.03% across exchanges, more than three times higher than the baseline level of less than 0.01% before the announcement.
On the other hand, the history of the funding rate of XRP shows that speculators who sell perpetual contracts favor the upside, with little time spent this year in the negative territory of the funding rate.
This highlighted the positive sentiment among 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 continue its positive funding rate, it is currently a good benchmark for measuring positive sentiment within altcoins, given the attention and volume it generates.
Considering the success of the lawsuit, the implications for the market are very positive, and the ruling provides clarity that did not exist before the ruling.
According to CCData, the market will see some trends emerging, such as coins that are considered securities with good recovery and potential outperforming and the potential for Bitcoin dominance to drop as a total percentage. in market cap, given renewed optimism in altcoins.
Despite the recent surge of positive sentiment and renewed investor confidence, XRP has experienced a significant price decline. After nearly reaching the $1 mark, which it has not seen since November 2021, XRP is now trading at $0.7002, marking a decline of more than 11% in the last 24 hours.
Featured image from Unsplash, chart from TradingView.com
