XRP, the token behind the Ripple payment network, has had an absolute monster rally over the past day. The token has seen a 65% price increase that has propelled it to the number 4 spot in the crypto ranking, dropping BNB to 5th place, although BNB on the other hand has also increased by 9% in the past week.
XRP overtakes BNB
XRP recently caught up BNB after reaching an annual high of $0.81, giving the cryptocurrency a market cap of $41 billion. The massive price spike can be attributed to investors jumping on the bandwagon for fear of missing out on XRP following the big news of the US Securities and Exchange Commission (SEC) victory.
The court ruled on June 13 that the sale of XRP to regular investors is not a sale of an unregistered security. As such, United States District Judge Analisa Torres ruled in part in favor of Ripple, saying XRP sales on public cryptocurrency exchanges were not offers of securities under the law.
The judge, however noticed that Ripple’s direct sale of XRP to institutional investors in the amount of approximately $700 million violated federal law regarding the sale of securities.
This catapulted the price of XRP from $0.478 to $0.7885 in just under a day. With its current market cap, this means that 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 increases by 1700%+
According to data from Coinmarketcap, XRP’s 24-hour trading volume is up a whopping 1,758.13% to over $13.49 billion. Trading volumes have skyrocketed on several exchanges, where South Korea-based crypto exchange Upbit had over $2.7 billion in 24-hour trading volume. Binance also saw over $2.3 billion in trading volume as investors rushed to buy XRP.
Mint glass facts shows that over $35 million short position transactions on XRP have liquidated in the last 24 hours. Most of these are from Bybit, OKX and Binance, with $21 million, $14 million and $14 million in short liquidations respectively.
Of course, rapid price increases often end in pullbacks as XRP remains a volatile digital asset. But the recent breakout shows that it is still an altcoin to watch, with the potential for even bigger gains if more investors continue to face FOMO. However, XRP’s potential for long-term growth is still supported by Ripple Labs’ real-world value as a payment network.
At the time of writing, XRP is still trading at $0.797 which translates to a 68% gain on the last day. It is currently the topper 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