XRP Sees Impressive Rebound, Adds $3 Billion to Market Cap Amid Legal Battle

In a remarkable turnaround from the previous year’s market slump, XRP, the cryptocurrency at the center of a legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), has surged in value, adding nearly $3 billion to its market capitalization. This resurgence has attracted the attention of investors, especially considering the broader recovery of the crypto market.

XRP Surpasses $0.5 Mark:

Over the past week, the value of XRP has experienced a notable 11% increase, surpassing the significant milestone of $0.5. As of writing, the cryptocurrency is currently trading at $0.519 per token, showing a 2% rise in the last 24 hours.

Rising Market Capitalization:

As XRP’s price continues to climb, its market capitalization has seen a substantial boost, rising from approximately $24.1 billion to $26.8 billion in just a few days. This increase indicates growing investor interest and a renewed confidence in the cryptocurrency.

Crypto Lawyer Predicts Further Growth:

Renowned crypto lawyer, John E. Deaton, expressed his belief that XRP was undervalued at $0.48. Deaton anticipates that those who hesitate to invest now may soon regret it as the price is expected to surpass the $1 mark. According to Deaton, a sense of fear of missing out (FOMO) will likely kick in once XRP reaches around $2 per token.

Factors Behind XRP’s Rise:

Several factors may be contributing to XRP’s recent surge. Notably, the XRP Ledger, the native network of XRP, has experienced significant spikes in activity from its second and third-largest addresses within a span of just two days. These events suggest potential significant changes in the network’s market position.

Increased Network Interaction:

Recent data from on-chain analytics firm Santiment reveals that the number of addresses interacting with the XRP network has skyrocketed to an unprecedented 490,000. This figure is only slightly behind the all-time high recorded on March 18th, which triggered a remarkable 45% price surge over the following ten days. High address activity is typically indicative of a vibrant network with a large user base.

Implications of Ripple’s Legal Battle:

The surge in address activity on the XRP Ledger coincides with positive news for Ripple Labs, as the SEC’s case against the fintech firm appears to be shifting in their favor. A federal judge’s ruling requires the SEC to disclose documents related to a 2018 speech by William Hinman, the former Director of Corporation Finance for the SEC. The outcome of this lawsuit could potentially impact XRP’s legal status as a security or non-security.

Ripple’s Optimism and CBDC Platform:

Ripple’s CEO, Brad Garlinghouse, remains optimistic about a resolution to the lawsuit within the next two to six months. In the meantime, Ripple has unveiled a groundbreaking platform specifically designed for central bank digital currencies (CBDCs). This innovative platform, based on the XRP Ledger, aims to empower central banks, governments, and financial institutions to create and manage their own digital currencies.

XRP’s recent resurgence, fueled by its increasing market capitalization and address activity, showcases its resilience in the face of regulatory challenges. As Ripple’s legal battle progresses and with the introduction of its CBDC platform, XRP continues to capture the attention of investors and crypto enthusiasts alike.