Bullish news from Ripple: Regardless of the conflict with the SEC, trading in the company’s own cryptocurrency XRP is booming.
XRP’s daily trading volume doubled in the second quarter of 2021. The cryptocurrency from Ripple behaved like the whole of the crypto market. Any negative economic effects of the legal dispute between Ripple and the US Securities and Exchange Commission (SEC) are therefore not too significant.
The numbers come from a quarterly report that Ripple published on July 29th Blog post published. The daily XRP trading volume averaged $ 2.26 billion in the first quarter of the year. In the three months that followed, it rose to $ 4.492 billion. The XRP sales made by Ripple also increased from $ 150.3 million to $ 157.9 million.
XRP development correlated with bull market
The Ripple report shows that the positive development of XRP cannot be viewed in isolation from the overall trend in the crypto market. Both the trading volume and the price of the cryptocurrency peaked in April, at the same time as the Bitcoin all-time high.
The authors of the blog post also go into the volatility in the crypto market, which again had a significant impact in the second quarter of the year. With the ongoing price fluctuations, they have seen a multitude of factors at work over the past few months. It mentions ransomware attacks, regulatory concerns and Elon Musk’s tweets. As a further factor influencing market developments, they identify a rising fear of inflation, which is leading investors, as is well known, to look for alternatives to fiat currencies.
By the way, XRP was more volatile than the key currencies Bitcoin and Ether.
Ripple vs. SEC continues
All in all, the first half of the year seems to have been favorable for XRP and Ripple. If it weren’t for the ongoing conflict with the SEC, which is likely to cloud the joy of the doubled trading volume somewhat.
As a reminder, the US Securities and Exchange Commission claims that XRP is not just a token, but a security. The litigation based on this argument began last December. Ripple has been accused of distributing securities without authorization for 7 years. The company faces a fine of up to $ 1.3 billion.
Against this claim, Ripple argues that the SEC failed to notify Ripple of the violation of the rules. The XRP publisher recently achieved success in court. Former SEC official William Hinman is due to appear as a witness. Hinman is known for his assessment that cryptocurrencies are currently not viewed as securities.
The procedure itself is still in a phase of preparation. Both parties exchange documents. In the blog post, Ripple promises to do everything possible to “move the case forward as quickly as possible”.