XRP, the sixth-largest cryptocurrency by market capitalization, initiated an altcoin dip by slipping below the $0.50 mark, a level not witnessed since October 19th. Notably, the decline coincided with a surge in XRP transactions, with 217 transactions each carrying over $1 million initiated by whales on the network. This surge followed a judge’s ruling on July 13th and 14th, affirming that Ripple did not violate securities laws.
Despite the market turbulence, data aggregator Santiment reported that large-scale holders did not exhibit panic, providing some stability to the situation. However, wallets holding at least 10 million worth of XRP collectively accounted for 67.2% of the available supply, marking the highest percentage since December 31, 2022. Analysts are now eyeing the altcoin as a potential candidate for a rebound, contingent on Bitcoin’s stability throughout the week.
The year 2023 started on a promising note for XRP with its impressive performance and hopes for a spot XRP exchange-traded fund [ETF] following the approval of the Bitcoin ETF. However, the excitement hit a snag when it was revealed that the product on Fidelity’s platform was an exchange-traded product [ETP], not an ETF.
Amidst regulatory uncertainties, analysts expressed skepticism about the imminent approval of an XRP ETF. The ongoing legal battle between the United States Securities and Exchange Commission [SEC] and Ripple poses a significant obstacle. Townsend Lansing, CoinShares’ head of product, stressed the necessity for the SEC to acknowledge XRP as not a security for any ETF approval to materialize.
XRP: Navigating Legal Ambiguity
The legal complexities surrounding the token were heightened in July 2023 when a judge ruled that the Ripple-backed token is not a security on retail exchanges but assumes that status when sold to institutional buyers. This ambiguity, coupled with an upcoming trial scheduled for April 23, continues to impede progress toward a spot ETF.
Adding to the recent market turmoil, the leading altcoin braced for further corrections following reports of a hack on Ripple co-founder Chris Larsen’s X account. However, executives clarified that while one account was breached, it did not constitute a hack. An official statement from Ripple is eagerly awaited as the situation unfolds.