XRP, the native token of the Ripple payment system, has defied the broader crypto slump by posting a remarkable 60% weekly gain. While Bitcoin and Ethereum have both been struggling to surpass important price levels at $30,000 and $1,900 respectively, XRP has emerged as the best performer among the top 25 cryptocurrencies.
This surge in XRP’s price comes after the initial market-wide rally following last Thursday’s lawsuit ruling, although the overall impact of the Ripple vs. SEC lawsuit on the crypto market seems to have faded. Despite giving back some of its gains from last Thursday, XRP remains up approximately 60% since the ruling.
In contrast, altcoins that enjoyed significant rallies last Thursday, such as Polygon’s MATIC, Solana’s SOL, and Cardano’s ADA, have now reverted back to their pre-ruling levels. MATIC and SOL are down 5% over the week, while ADA dropped 2%.
Although the rush to buy XRP may have subsided, there is still potential buying pressure from digital asset funds adding the token to their holdings. Index funds, in particular, could play a significant role in boosting the price of XRP.
Currently, XRP has a market capitalization that is over 3.5 times that of ADA and SOL, which are typically the largest constituents outside of Bitcoin and Ethereum. If XRP is included in the underlying indexes, it could represent 4-5% of the composition of the top broad crypto indexes.
While Bitcoin and Ethereum may be struggling, XRP’s resilience in the face of the broader crypto slump showcases its potential as a valuable asset in the market. This recent surge in XRP’s price highlights the continued interest and potential faith in Ripple’s payment system and its native token. However, with the crypto market being highly unpredictable, it remains to be seen how long XRP’s momentum will last and whether it can sustain its upward trajectory.