XRP, the sixth largest cryptocurrency by market capitalization, has been gaining popularity in South Korea and globally due to the prospect of a positive outcome in the ongoing lawsuit between the Securities and Exchange Commission (SEC) and Ripple. XRP’s trading volume has surged in South Korea, overtaking all major cryptocurrencies on crypto exchanges such as Coinbase, UpBit, GOPAX, Bithumb, and Coinone, according to recent data released by South Korean analytical provider firm Kaiko. WhaleWire, another crypto analytics firm, also reported that $16 billion worth of XRP tokens have been traded since the beginning of 2023 on different South Korean exchanges. XRP’s 24-hours trading volume surpassed $500 million only on UpBit exchange, as per CoinMarketCap data. XRP’s trading volume surge is not just limited to South Korea, but is also being observed globally, as reflected by its presence among the top 100 Binance Smart Chain Whales, where 52.6 million XRP tokens, worth $26.87 at current market prices, are currently held.
XRP’s growing popularity can be attributed to the possibility that Ripple will win the ongoing lawsuit against the SEC. The anticipation of a positive outcome has reflected in XRP’s recent price action, as the coin has gone up by over 45% since the beginning of 2023. However, the market is currently seeing a correction, with almost half of the top 100 cryptocurrencies, including Bitcoin, currently in the red. Currently trading fractionally below $0.50, XRP is down 1.4% over the week.
The legal battle between Ripple and SEC began in December 2020, when the latter sued Ripple and two of its executives, claiming that they illegally raised $1.3 billion in funds through the sale of unregistered securities in the form of XRP. Ripple has denied the allegations and said that XRP is not a security, but a currency similar to Bitcoin and Ethereum. Ripple has also pointed out that the SEC’s stance on XRP is inconsistent with its views on Bitcoin and Ethereum, which were not considered securities.
The lawsuit is currently a topic of much debate in the crypto community since the verdict could have significant implications for the broader crypto industry. If Ripple wins, it could set a precedent for other cryptocurrencies to be considered currencies rather than securities, clearing the way for their wider adoption. However, if the SEC wins, it could lead to increased regulatory scrutiny on cryptocurrencies and potentially hamper their growth.
Meanwhile, XRP’s price action will remain largely dependent on legal developments in the ongoing lawsuit. Ripple recently won several minor victories in its case, including gaining access to the SEC’s internal documents and requiring the agency to disclose its stance on Bitcoin and Ethereum. However, the lawsuit is far from over, and the final verdict is unlikely to be reached anytime soon. Therefore, it remains to be seen how XRP’s price and popularity will be affected by the legal battle in the coming months.