Optimism among traders and investors has propelled XRP, to the forefront of the market, outperforming major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and the broader market during Asian trading hours. XRP’s price has risen by 7% in the past 24 hours, reaching a high of $0.64 the highest point since March 25, 2024.
XRP outperforms the broader crypto market
This significant surge in the price of XRP comes amid a scheduled token unlock and increased hopes for a settlement in the long-running legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the company associated with XRP.
A recent SEC filing indicated plans to amend its complaint against Binance, particularly concerning “Third Party Crypto Asset Securities.” Although no specific tokens were named, traders interpret this as a positive sign for the Ripple-SEC case. Ripple is a fintech company focused on creating a global payments network, while XRP is an independent digital asset used for online payments and currency swaps.
Ripple will release 1 billion XRP tokens, valued at approximately $641 million at current prices, in August 2024 as part of a pre-determined schedule. This release is part of a systematic plan by Ripple to increase the supply of XRP in the market gradually.
Interestingly, while increasing the token supply might logically lower prices, recent research suggests it could actually boost a bullish market trend due to increased liquidity. The idea is that more tokens in circulation can enhance trading activity and attract more investors, thus potentially driving up the price.
South Korean investors demand for XRP
Market data shows that the demand for XRP is largely driven by South Korea. The trading pair of XRP and the Korean Won reached $386.5 million in volume, surpassing Binance’s XRP-USDT pair, which hit $352.5 million. The enthusiasm from South Korean traders has historically been a significant factor in the cryptocurrency market, often leading to substantial price movements.
Earlier in July 2024, XRP trading activity on South Korean exchanges surpassed that of Bitcoin and Tether (USDT) stablecoins, leading to a 20% rally in XRP’s price. This surge in trading activity highlights the strong interest and belief in the potential of XRP among South Korean investors. The increased trading volumes and price movements suggest that South Korean traders see significant opportunities in XRP, further driving its market performance.
This combination of legal optimism and market dynamics is setting the stage for a potentially significant movement in XRP’s price in the coming weeks. The outcome of the Ripple-SEC case could have broader implications for the cryptocurrency market, potentially influencing regulatory approaches and investor confidence in digital assets.
