Elon Musk, the billionaire CEO of Tesla and SpaceX, has long been known for his influence on the cryptocurrency market, especially when it comes to his favored coin, Dogecoin (DOGE). However, his latest comments on Ripple’s XRP have reignited debates across the crypto community, following his indirect mention of the digital asset during a town hall meeting in Pittsburgh. Despite facing a legal battle over alleged manipulation of DOGE and insider trading, Musk remains a key figure in the world of crypto.
The Lawsuit Dismissal And Musk’s Crypto Stance
In a recent court case, Musk was accused of defrauding investors, leading to billions in losses through manipulation of DOGE prices. On August 29, U.S. District Judge Alvin Hellerstein dismissed the federal lawsuit, marking a victory for Musk. Despite this legal win, Musk has chosen to take a more cautious approach when it comes to endorsing cryptocurrencies publicly. This shift in tone reflects Musk’s evolving stance as he distances himself from the controversies that have surrounded his previous crypto endorsements.
Musk’s XRP Mention and Its Market Impact
At a political rally for Donald Trump in Pennsylvania, Musk was asked about the U.S. Securities and Exchange Commission’s (SEC) tough stance on cryptocurrencies under the Biden administration. Specifically, he was questioned about the potential for XRP Ledger to be adopted by financial institutions in the future. While Musk did not offer an endorsement, his response piqued interest: “This is definitely not an endorsement or lack of endorsement for XRP, but I do think crypto by its very nature helps with individual freedom.”
While Musk’s comments on XRP were cautious, his influence on the crypto market was clear. The mention of XRP, even without a direct endorsement, contributed to an uptick in the coin’s market performance. XRP saw a 2.41% increase in the 24 hours following Musk’s statement, trading at $0.5542. This positive movement came amid a broader rise in altcoin prices, with Ethereum (ETH) leading the charge with a 4% increase.
Ripple Effect on the XRP Ledger
Musk’s comments also coincide with a surge in activity on the XRP Ledger. According to data from Santiment, daily active wallets on the XRP Ledger reached a three-month high of 35,799, with the creation of 3,858 new wallets in just one day—marking the highest figure in over seven months. This uptick in activity has fueled optimism within the XRP community, especially as the SEC prepares to file an appeal in its ongoing case against Ripple Labs.
Also Read: XRP’s Price Prediction – Is a $20 Rally Still Possible? Analysts Weigh In
Despite not explicitly endorsing XRP, Musk’s remarks have fueled speculation about the potential future of the cryptocurrency. His mention of decentralized assets as a “safeguard against centralized control” has resonated with many crypto enthusiasts. As the SEC continues its legal battle with Ripple Labs, the renewed attention on XRP could play a role in shaping market sentiment and influencing its long-term price trajectory.
While Musk has become more reserved in his public crypto endorsements, his influence on the market remains undeniable. Whether through DOGE, PEPE, or XRP, Musk’s words continue to ripple through the world of digital assets, leaving investors eagerly watching for his next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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