The price of XRP, the native cryptocurrency of the Ripple payment system, has increased by 12% to $0.4256 in just one hour.
Its market capitalization has increased by 11% to $21 billion as a result of this remarkable price rise, further consolidating its place among the leading cryptocurrencies.
The $1.9 billion increase in trading volume for XRP, up 75%, reflects the heightened interest of investors.
In a significant lawsuit brought by the SEC against Ripple Labs last week, a court acknowledged the viability of XRP as both a service and a currency.
Judge Sarah Netburn of the Southern District Court of the United States labeled XRP in exactly accordance with the way Ripple’s attorneys had presented their argument. Netburn is assisting in the arbitration proceeding but is not the presiding judge.
If Ripple’s counsel continues to portray XRP as a currency in the same manner, it is likely that the SEC’s whole case will fall apart.
After hearing about the SEC’s action, US-based exchanges removed XRP because of its diminished credibility. Yet, Asian markets saw a sustained rise in the coin.
Although it’s not yet obvious if XRP relists on American exchanges, indicators indicate a strong likelihood that the SEC will approve the move. Only by convincing the jury and court that it serves as a utility and currency will XRP be able to rejoin eToro and Coinbase.
Netburn’s claim is persuasive enough to persuade presiding judge Analisa Torres to favor Ripple.