XRP, one of the major cryptocurrencies, experienced a significant surge of 17% in its price after the settlement of a legal case involving Ripple Labs and the U.S. Securities and Exchange Commission (SEC). This surge led to an increase in XRP’s price from 50 cents to 65 cents, accompanied by a substantial rise in trading volumes.
The settlement between Ripple and the SEC required Ripple to pay $125 million in civil penalties and agree to an injunction against future violations of securities laws. Despite this settlement, the SEC is expected to appeal the ruling, potentially prolonging the legal proceedings in the case.
Following the announcement of the settlement, the cryptocurrency market reacted positively, with XRP’s price reaching 65 cents and trading volumes surging to $4.2 billion in the past 24 hours, up from $1.2 billion on the previous day. The market movements were primarily driven by spot trading, as indicated by the minimal short liquidations on XRP-tracked futures.
Moreover, the open interest on XRP-tracked futures increased by $200 million after the settlement, suggesting that new capital is entering the market. A majority of traders holding positions on XRP futures are optimistic about further price increases, with over 60% of them having a long bias.
While XRP saw significant gains, other major cryptocurrencies like Bitcoin, Solana’s SOL, and BNB Chain’s BNB remained unchanged in the past 24 hours. Ether (ETH) experienced a slight decline of 3.4%, while the CoinDesk 20 (CD20) index, which tracks the largest cryptocurrencies excluding stablecoins, showed a modest increase of 0.3%.
In the realm of exchange-traded funds (ETFs), bitcoin ETFs saw an inflow of $45.1 million on August 7, with notable movements in funds like GBTC, BTCW, and IBIT. On the other hand, ether ETFs witnessed outflows of $23.7 million, with Grayscale’s ETHE leading the outflow trend.
The market sentiment around bitcoin may be influenced by the potential impact of a Kamala Harris presidency, with experts suggesting that her stance on crypto regulation could shape market dynamics. Harris’ emergence as a pro-crypto advocate has garnered attention from industry stakeholders who are advocating for bipartisan support for crypto legislation.
While XRP led the gains in the cryptocurrency market, other altcoins like TONCoin also saw positive price movements. TONCoin surged by 9.7% amid the conclusion of ‘The Open Summit’ event in Taipei, indicating a potential momentum for the coin.
In conclusion, the settlement of the legal case between Ripple and the SEC had a significant impact on the cryptocurrency market, with XRP experiencing a notable price surge. The ongoing developments in the regulatory landscape and market dynamics continue to shape the future trajectory of cryptocurrencies and digital assets.