Ripple (XRP) has experienced a significant surge in market capitalization, making it the fourth-largest cryptocurrency after Ripple Labs’ partial victory over the Securities and Exchange Commission (SEC) on July 13. Within just three hours of the ruling, XRP’s market cap increased by an impressive $21.2 billion, reaching a new yearly high of $46.1 billion. This surge propelled XRP from the 7th position to surpass Circle’s USD Coin (USDC) and Binance’s BNB token, securing its place as the fourth-largest crypto. As of now, Ripple’s market capitalization has settled at $42.5 billion, signifying an overall growth of 84% following the SEC ruling.
The significant increase in XRP’s value was a direct result of the District Court for the Southern District of New York stating that the sale and offer of XRP on digital asset exchanges did not constitute the sale of investment contracts. This favorable ruling provided renewed confidence in XRP among investors, leading to a surge in both market capitalization and price. In fact, the price of XRP soared by up to 98% in the hours following the decision, briefly reaching a high of $0.93 according to TradingView data.
The sudden influx of buyers seeking XRP caused U.S. crypto exchange Uphold to experience temporary downtime due to an unprecedented spike in volume. Uphold had been one of the few larger U.S.-based platforms that continued to offer sales of XRP while others chose to delist the token. Uphold, which has now resumed operations, expressed pride in being the only platform that stood by XRP during challenging times.
In response to the ruling, several prominent U.S. exchanges, including Coinbase, Kraken, and iTrustCapital, have announced their plans to re-list XRP on their platforms. Additionally, Gemini, the crypto exchange owned by the Winklevoss twins, has hinted at its intention to follow suit in the near future. This wave of re-listing activity demonstrates growing confidence in XRP’s legal standing, leading to increased availability for investors.
The partial win against the SEC has not only reshaped the position of XRP as a major cryptocurrency but has also sparked discussions around regulation and its implications for the industry. As the fight for clarity continues, Ripple’s victory has undoubtedly influenced market trends and drawn attention to the evolving landscape of cryptocurrencies and their regulatory frameworks.