Ripple’s XRP Token Surges 96% After Partial Victory In SEC Lawsuit
XRP’s price has skyrocketed 96% in the past day, climbing the most among the largest cryptocurrencies by market capitalization after the Judge’s ruling.
By Anna B Kiwanuka
XRP, one of the largest cryptocurrencies by market capitalization, has witnessed a remarkable 96% surge in price within a single day. This surge came after a U.S. judge ruled that the sale of XRP tokens on exchanges does not fall under the category of investment contracts. The price of XRP reached a high of 93.8 cents, its highest level since March 2022, before settling at 81 cents at the time of publication.
The recent surge in XRP’s price can be attributed to a significant legal development. The District Court for the Southern District of New York stated that the sale of XRP on digital asset exchanges should not be considered as the offering or sale of investment contracts. The court found that the transactions in question did not fulfill the third prong of the Howey test, which determines whether an investment contract exists. This ruling has provided clarity regarding the legal status of XRP, leading to increased investor confidence and subsequent price appreciation.
XRP’s price surge following the court ruling has been noteworthy. The cryptocurrency climbed to a high of 93.8 cents, showcasing its strongest performance since March 2022. Although the price has slightly retreated to 81 cents at the time of writing, it still represents a substantial increase within a short period. This surge demonstrates the market’s positive response to the legal clarity surrounding XRP and highlights the potential for renewed investor interest in the cryptocurrency.
As XRP’s price soared and investors sought to capitalize on its newfound legal status, Uphold, one of the few crypto exchanges where investors can purchase XRP, experienced internment issues. The exchange faced challenges due to the high demand for XRP, leading to potential delays and difficulties in processing transactions. Uphold acknowledged these issues through its official Twitter account, attributing them to the overwhelming demand. It is a testament to the sudden surge in interest and highlights the need for exchanges to scale their infrastructure to handle increased user activity during periods of high market volatility.