A court ruling that XRP is not a security has caused the crypto to surge by over 70% in the last 24 hours. The project’s market cap has also jumped to over $41 billion, taking the number four spot. The ruling is a partial victory for Ripple, which has been in a legal battle with the US SEC since December 2020.
Also Read: US Judge Rules Ripple XRP is Not a Security
Although the asset is trading at levels not seen since April 2022, XRP shorts, unsurprisingly, have lost the most money so far this year. As per the data on Coinglass, XRP-based futures traders faced losses of $58 million. Of the $58 million, shorts accounted for $33 million, and longs constituted the remaining $25 million.
Crypto exchange Bybit saw the highest liquidations at $21 million, followed by OKX and Binance with $14 million each.
Will the XRP rally continue?
The ruling that XRP does not constitute ‘a security’ is very significant given the regulatory environment in the US. Moreover, the rally has spread to other tokens that the SEC has accused of being unregistered securities, such as Cardano (ADA), Solana (SOL), etc.
Furthermore, the significance of the ruling has almost changed the tide in the crypto market. Just prior to the ruling, the market was being led by Bitcoin (BTC), due to BlackRock’s filing of a spot BTC ETF (exchange-traded fund). However, right after the ruling, the markets seem to have tilted its head towards altcoins, following XRP.
Furthermore, several exchanges have begun to relist XRP. This could open the asset to more investments, and therefore, a continued rally. And given the importance of the ruling and the partial victory it grants Ripple and the general crypto industry, the current rally might just stick around and lead us to a new bull run. At press time, XRP was trading at $0.788815, down by 0.6% in the last hour.
Also Read: Coinbase To Re-List Ripple XRP