Yet, XRP’s recent achievements come against a backdrop of legal uncertainties and a turbulent month where it underperformed many of its peers
XRP, the digital asset affiliated with Ripple, witnessed a significant uptick, surging nearly 10% earlier today. As of recent metrics, XRP has settled at a 4.5% gain, still significantly outshining its rivals, including Bitcoin, Ethereum, and Cardano.
Bitcoin, for instance, barely moved with a 0.2% increase, while Ethereum slightly ascended by 0.4%. In contrast, Cardano, a notable contender in the crypto market, saw its price dip by 0.4%.
However, when we zoom out to look at the seven-day performance, the narrative changes a bit. Over a week, XRP suffered a notable decline, shedding 14% of its value. In comparison, Ethereum’s value decreased by 9.3% and BNB’s by 9.9% over the week. Cardano’s seven-day performance also indicated a drop but at a lesser rate of 7.5%.
As reported by U.Today, XRP recently lost roughly 40% in a single month, underperforming other top cryptocurrencies and erasing its gains that were added because of the favorable Ripple ruling.
The SEC is fighting back
Despite its impressive short-term performance, XRP remains clouded by uncertainties surrounding the U.S. Securities and Exchange Commission (SEC) appeal against Ripple.
The appeal, recently submitted by the SEC, challenges a July court order. This order had decided that Ripple’s sales and offers of XRP on cryptocurrency trading platforms didn’t lead investors to anticipate profits dependent on others’ efforts. Furthermore, it had ruled that XRP distributions as payment for services don’t constitute an “investment of money.”
This appeal’s central issues revolve around the classification of XRP’s offers and sales. One court has already indicated a disagreement with the initial Ripple decision, but some prominent voices within the XRP community have downplayed the significance of such a move.
The court previously recognized that institutional sales fit the Howey criteria. However, distinctions have been drawn regarding the categorization of coins sold directly to institutional investors compared to retail investors in secondary markets.