XRP, the cryptocurrency associated with Ripple Labs, is making a comeback. After a long legal battle with the U.S. Securities and Exchange Commission (SEC), demand for XRP on crypto exchanges is back to where it was before the lawsuit.
XRP’s Comeback
The SEC sued Ripple in 2020, claiming that XRP was an unregistered security. This caused many major exchanges to delist XRP, limiting its trading. However, in a landmark ruling last year, a judge decided that XRP sold on exchanges wasn’t a security.
Since then, demand for XRP has been steadily increasing, especially in the U.S. More and more exchanges are allowing XRP trading, and the share of U.S. platforms in global XRP volume has jumped from less than 2% to 14% in just one year.
Pent-Up Demand
The judge’s ruling released a wave of pent-up demand from traders who couldn’t access XRP during the lawsuit. This, along with speculation about a potential settlement between the SEC and Ripple, has led to XRP’s recent price gains.
Volatility and Price Drops
Despite the positive developments, XRP’s price has been volatile. It experienced a significant drop after a scheduled meeting between the SEC and Ripple was canceled.
Currently, XRP is trading at $0.490, down 18% in the last week. This drop mirrors the broader cryptocurrency market, with Bitcoin also down 19% in the same period.
The Future of XRP
While the legal battle between Ripple and the SEC is still ongoing, the recent developments suggest that XRP is well-positioned for future growth. The return of demand and the increasing availability of XRP on exchanges are positive signs for the cryptocurrency.
