Elon Musk's comments on cryptocurrencies boost market confidence, sending XRP and Ethereum up.
Wallet Activity on XRP Ledger Increases as SEC Appeals Ripple Labs Lawsuit.
Elon Musk, the famous tech entrepreneur and CEO of Tesla and SpaceX, has long been an advocate of Dogecoin [DOGE], often using his platform to promote his favorite cryptocurrency.
But after facing accusations of defrauding investors through DOGE manipulation and insider trading, leading to serious financial losses of up to billions of dollars, Musk decided to step back.
However, on August 29, U.S. District Judge Alvin Hellerstein in Manhattan dismissed the federal lawsuit against him.
Despite this, Musk has maintained his stance of not promoting cryptocurrencies.
Musk's XRP Comments Spark Controversy
Just when things seemed calm, Elon Musk sparked controversy by mentioning Ripple-affiliated cryptocurrency [XRP] during a meeting in Pittsburgh, Pennsylvania.
This came up during a recent rally for Donald Trump, when an audience member asked about the SEC's confrontational approach to crypto under a Biden administration and whether Musk envisions the XRP Ledger being adopted by financial institutions in the future.
Responding to the question, Musk said,
“This is certainly not a pro or con for XRP, but I do think that cryptocurrency by its very nature helps improve individual freedom.”
Musk's Real Cryptocurrency Backing and Its Impact
It is possible that this was the event where Musk expressed his support by wearing his famous ‘Make America Great Again’ hat and calling himself ‘Dark MAGA.’
“As you can see, I'm not just MAGA, I'm Dark MAGA.”
As a result, the price of MAGA increased by 20%, while Dark MAGA (DMAGA) jumped 227%, reaching around $0.0073.
In fact, not only with DOGE and DMAGA, Musk is also involved in promoting many other cryptocurrencies.
For example, he previously shared a post on X about the frog-themed cryptocurrency Pepe [PEPE], which caused the price to increase by a whopping 23%.
Overall Impact on XRP
However, it should be noted here that instead of talking specifically about XRP, Musk shared his views on cryptocurrencies in general.
He described them as an “interesting and potentially valuable safeguard against centralized control,” highlighting their potential role in promoting financial independence.
Despite not directly backing XRP, Elon Musk’s comments on cryptocurrencies still had a positive effect across the market, with Ethereum [ETH] leading the Altcoin with a 4% gain.
Other cryptocurrencies have seen similar growth.
According to the latest data from CoinMarketCap, XRP is trading at $0.5542, up 2.41% in the last 24 hours and 3% gains on the week.
Additionally, recent data from Santiment shows a significant increase in activity on the XRP Ledger, with the number of daily active wallets reaching a three-month high of 35,799 unique addresses participating in at least one XRP transaction.
As expected, XRP Ledger saw the creation of 3,858 new wallets in just one day, marking the highest number of new wallets recorded in over seven months.
What is the future?
The increase coincides with the SEC filing a ‘Pre-Contested Civil Appeal Statement’ against Ripple Labs, indicating its intention to contest a previous ruling in the ongoing case.
Regardless, while Musk has not directly endorsed XRP, his mention of the cryptocurrency could positively impact the ongoing lawsuit against the SEC.
As such, this renewed attention could pave the way for brighter days ahead for XRP, which has been going through a tough time in the long-running bear market.
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