XRP, the token behind the Ripple payment network, has been on an absolute monster rally in the last day. The token has seen a 65% price surge that propelled it into the number 4 spot in the crypto rankings, pushing BNB down to 5th place, even though BNB on the other hand, is also up by 9% in the past week.
XRP Overtakes BNB
XRP recently overtook BNB after reaching a yearly high of $0.81, giving the cryptocurrency a market cap of $41 billion. The huge price spike can be attributed to investors jumping on the bandwagon with fear of missing out on XRP after the big news regarding its victory over the United States Securities and Exchange Commission (SEC).
The court determined on June 13 that the sale of XRP to regular investors does not constitute the sale of an unregistered security. As such, United States District Judge Analisa Torres ruled in partial favor of Ripple, saying that XRP sales on public cryptocurrency exchanges were not offers of securities under the law.
However, the judge remarked that Ripple’s direct sale of XRP to institutional investors in the amount of approximately $700 million violated federal legislation regarding the sale of securities.
This catapulted XRP’s price from $0.478 to $0.7885 in just under a day. With its current market cap, this means XRP is now the third-largest native cryptocurrency behind Bitcoin and Ethereum when the USDT stablecoin is removed.
XRP price still holding gains | Source: XRPUSD on Tradingview.com
24-Hour Trading Volume Spikes 1700%+
According to data from Coinmarketcap, XRP’s 24-hour trading volume has spiked a whopping 1,758.13% to over $13.49 billion. Trading volumes have surged on various exchanges, where Upbit, the South Korean-based crypto exchange, had over $2.7 billion in 24-hour trading volume. Binance also saw over $2.3 billion in trading volume as investors scurried to buy XRP.
Coinglass data shows more than $35 million short position trades on XRP have been liquidated in the past 24 hours. Most of these are from Bybit, OKX, and Binance, with $21 million, $14 million, and $14 million in short position liquidations, respectively.
Of course, fast price rises often end in pullbacks as XRP remains a volatile digital asset. But its recent breakout shows it’s still an altcoin to watch, with the potential for even bigger gains if more investors continue to FOMO. However, XRP’s potential for long-term growth continues to be supported by Ripple Labs’ real-world value as a payments network.
At the time of writing, XRP is still trading at $0.797, which translates to 68% gains in the last day. It is currently the top gainer in the market with 70.66% and 56.79% gains in the last seven and 30 days, respectively.
Featured image from iStock, chart from Tradingview.com