Rippleâs XRP Price Continues to Decline Despite Legal Win Against the U.S. SEC
Ripple recently made a breakthrough after winning a legal battle against the U.S. Securities Exchange Commission (SEC). However, market analysts note that the win has not translated to a surge in XRPâs value. Coinmarketcap data reveals that XRP is currently trading at $0.4284.
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XRP is facing a slump amid the market crisis. The price decline comes despite Rippleâs latest win against the U.S. Security Exchange Commission(SEC) where Judge Torres clarified that XRP cannot be considered a security. XRP was one of the tokens being investigated by the regulator for being an unregistered security.Â
Rippleâs CTO breaks silence on tokenâs priceÂ
David Schwartz responded to an XRP influencer tweet expressing his views on XRPâs price decline below $0.40.Schwartz focused on the tokenâs utility aspect by adding that the current price enables users to acquire enough XRP to facilitate transactions despite the market price.
https://twitter.com/JoelKatz/status/1809097926020640899
The CTOâs comment emphasized XRPâs inefficiency and reduced value as a payment option due to the high transaction fees. The industry still questions XRPâs practical use despite its legal clarity. They added that the high transaction fees deter its widespread adoption.
After Judge Torresâ ruling last month, XRP is said to be one of the few tokens enjoying a clear legal status. According to the California ruling, Ripple did not contravene any federal security laws by issuing the XRP token without registering it as a security with the SEC.
Data indicates that XRP continues to struggle to recover despite the legal clarity. Fridayâs decline marked an 89.1% drop from its all-time high of $3.84.The drop sparked conversations within the crypto community, and the uproar reportedly caught Rippleâs CTOâs attention.
XRP community remains dividedÂ
Community members have reportedly remained hopeful despite XRPâs market slump. X user, Brett Hill, who is a Bitrue ambassador, said investors should take advantage of this opportunity to buy the dip. Citing one of Brettâs posts where shilling XRP, âIn times like these itâs important to stay grounded and view dips as rare opportunities to accumulate.â
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Hillâs sentiments echo those of other community members who believe that market turbulence will translate to long-term gains. Some analysts have also affirmed the community membersâ views. They pointed out that historical patterns suggest significant dips are often followed by substantial gains.
Others remained skeptical due to the recent downtrend and high transaction fees. Investors highlighted that legal victories such as the one experienced by Ripple in California often lead to market gains. They reported that the practical challenges of XRP as a mode of payment have greatly undermined the legal victories.
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Cryptopolitan reporting by Collins J. Okoth