Weekly Market Wrap: Ripple's XRP Ruling Boosts Crypto Market by $73.5B
The crypto market experienced a significant surge, adding $73.5 billion in value, following a US judge's ruling that found Ripple's XRP to be a non-security in certain cases. The market cap of cryptocurrencies increased by 5.7% over the past 24 hours, reaching a total of $1.3 trillion.
XRP led the market gains with a 66.4% increase, followed by Stellar (XLM) at 54.2%. The positive sentiment spread to Bitcoin (BTC), which reached a new yearly high of $31,686, surpassing April's peak. Ether (ETH) also broke through the psychological resistance level of $2,000.
Other top gainers in the market include Solana (SOL) with a 34.7% increase, Cardano (ADA) rising by 23.7%, and Polygon (MATIC) with a 19.6% gain. These assets, along with XRP and XLM, suffered declines in June due to SEC lawsuits against Binance and Coinbase, which labeled them as securities.
The favorable ruling for XRP has had a ripple effect on the crypto market, boosting investor sentiment and driving widespread gains across various digital assets.
Judge Rules XRP Sales Not Securities; Impact on Crypto Industry Expected
Judge Analisa Torres's recent ruling on Ripple's XRP sales concludes a three-year legal battle and sets an important precedent for crypto issuers in the United States. The Securities and Exchange Commission (SEC) claimed that all XRP sales were securities transactions, but the court clarified that this only applied to "institutional sales" that raised $728 million. Programmatic sales and sales by Ripple's co-founders were deemed non-securities transactions.
Crucially, the court declared that XRP itself is not a security, regardless of the circumstances of its sale. This decision could have implications for other cryptocurrencies like Cardano, Solana, and Polygon, which the SEC recently alleged to be securities in a lawsuit against Coinbase.
The ruling has prompted interest from crypto exchanges to relist XRP, which was delisted by several exchanges following the SEC's lawsuit. This case's outcome is expected to shape the legal landscape for crypto issuers and could influence the regulatory treatment of other digital assets moving forward.
Ethereum Tops Crypto ESG Ranking; Bitcoin Criticized for Energy Usage
Crypto data firm CCData released an institutional-grade ESG scoring system for digital assets. The benchmark evaluated environmental, social, and governance risks, considering decentralization and energy consumption metrics. Ethereum received the highest grade (AA) for excelling in all ESG factors, thanks to its transition to proof-of-stake technology.
Solana, Cardano, and Polkadot earned top-tier grades for their decentralization efforts. Bitcoin scored well in social and governance aspects but was criticized for its energy usage and hardware requirements. CCData evaluated 40 major digital assets based on decentralization, security, and climate impact.
ESG mandates are gaining traction among institutional investors and asset management firms. PwC predicts ESG-related assets under management could reach $33.9 trillion by 2026. At CoinDesk's Consensus conference, experts highlighted the importance of embracing ESG to attract institutional investments.
XBO Featured Coin of the Week —– XRP
Ripple Labs introduced XRP in 2012 as a digital currency utilized for settlement purposes on the Ripple network, a blockchain-based payment system intended to facilitate fast and cost-effective cross-border transactions.
A noteworthy characteristic of XRP is its rapid transaction processing time, completing transactions within seconds, a notable improvement compared to cryptocurrencies like Bitcoin or Ethereum. This swiftness makes XRP appealing for financial institutions seeking efficient and prompt settlement of large sums.
Scalability is another significant aspect of XRP, as the Ripple network can handle a substantial volume of transactions per second. This scalability feature makes it particularly suitable for enterprise applications such as cross-border payments, remittances, and various financial transactions.
XRP possesses a fixed supply of 100 billion coins, with a majority held by Ripple Labs. However, the company has committed to placing a significant portion of its XRP holdings into escrow. This measure aims to enhance price stability for the cryptocurrency while promoting transparency regarding its supply.
Overall, XRP is a cryptocurrency with unique features that make it well-suited for use in enterprise applications. While its adoption has been slower than some other cryptocurrencies, it continues to be used by many financial institutions and businesses worldwide.
Buy, sell, and swap XRP securely at XBO.com.
Disclaimer: Our content does not constitute financial advice. It is only intended for informational and educational purposes.