Ripple’s recent victory in court against the US Securities and Exchange Commission (SEC) has had significant implications for the cryptocurrency market, particularly in terms of trading volumes. Following the court’s ruling, spot trading volumes on crypto exchanges experienced a substantial surge, increasing from $12.74 billion to $16.56 billion within just two days. This represents a growth of around 30%, according to data from The Block’s data dashboard.
The spike in trading volume was especially prominent on Friday, with almost all major centralized exchanges witnessing a sharp increase in volume. This surge can largely be attributed to the excitement surrounding Ripple’s success in the ongoing lawsuit brought by the SEC. The court ruled that selling XRP on exchanges does not constitute an investment contract, thus dismissing the SEC’s claim. However, the judge also classified XRP as a security when sold to institutional investors, as it met the conditions outlined in the Howey Test.
Despite the nuanced ruling, the verdict led to an initial surge in the price of XRP, which experienced a rally of over 70%. The sudden rush to buy XRP overwhelmed some crypto exchanges, resulting in technical difficulties and temporary outage for platforms like Uphold, a US-based exchange. Uphold, which continued to offer sales of XRP, acknowledged the overwhelming volume spike but clarified that no platform could have effectively coped with the 50x surge.
In addition to Uphold, other major crypto exchanges such as Binance, Coinbase, Kraken, Bitstamp, and Huobi have also reported an increase in trading volume following the court’s decision. This demonstrates the direct impact of Ripple’s victory on the entire crypto market, as traders sought to capitalize on the positive sentiment and potential shifts in SEC’s stance towards altcoins.
Furthermore, Ripple’s win against the SEC has raised hopes among investors that the commission may change its approach towards other altcoins. Prior to the lawsuit, the SEC had targeted exchanges such as Binance and Coinbase, citing numerous unregistered securities listed on their platforms. These tokens included popular cryptocurrencies like Solana, Cardano, Chainlink, Filecoin, Cosmos, and more, which had experienced a downtrend and even faced delisting on some exchanges.
However, Ripple’s legal triumph sparked optimism among investors, leading to a positive impact on these altcoins. Solana, Cardano, and Chainlink rallied on the news, experiencing gains of around 20% in a single day. This development not only provided a boost to the affected altcoins but also instilled confidence in the broader cryptocurrency market.
Ripple’s recent victory against the SEC has had a profound and immediate influence on crypto trading volumes. The surge in spot trading volumes on major exchanges demonstrates the positive response from traders and investors, eager to take advantage of the changing landscape for cryptocurrencies. Additionally, the ruling has potentially altered the SEC’s approach towards altcoins, with hopes for greater clarity and acceptance in the market. As the crypto industry continues to navigate regulatory challenges, Ripple’s win sets an important precedent and has undoubtedly driven significant market dynamics.