The payments-focused cryptocurrency XRP is leading the pack, surging 7% in the last 24 hours to over $0.64. This marks its highest point since March, defying expectations as a large token unlock looms in August.
Market sentiment seems fueled by growing hope for a resolution in the long-standing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The SEC recently amended its lawsuit against crypto exchange Binance, raising speculation that the regulatory body might be softening its stance on digital assets like XRP.
While the SEC hasn’t explicitly mentioned XRP, traders are interpreting this move as a potential sign of an approaching settlement in the Ripple lawsuit. It’s important to note that Ripple, a fintech company building a global payments network, is separate from XRP, the digital asset used on the network.
Adding to the bullish outlook, a pre-determined token unlock schedule will see 1 billion XRP (around $641 million) released in August. Traditionally, increased token supply could lower prices. However, some analysts believe this could actually accelerate a positive trend by boosting liquidity.
Also Read: SEC’s August 1 Meeting Sparks XRP Speculation: What You Need To Know About The Latest Developments
South Korean markets appear to be a key driver for XRP’s recent surge. Trading volume for the XRP-Korean Won pair dwarfs its USDT counterpart on Binance, suggesting strong local demand. South Korean investors are known for their enthusiasm for crypto, often triggering buying pressure and influencing prices. Earlier in July, XRP trading activity on Korean exchanges surpassed Bitcoin and Tether, contributing to a 20% rally.
With the SEC lawsuit and token unlock looming, XRP’s future trajectory remains uncertain. However, the current optimism and strong Asian market support paint a promising picture for the payments-focused cryptocurrency.
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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