The price of Ripple’s XRP went up by 10 percent in just one day, nearly hitting the $0.7 mark on Monday, before easing back later on the same day.
Trading volumes surged from $1 billion on Sunday to $2 billion, as reported by CoinGecko. The price hike made XRP the fourth largest token in the crypto market, replacing the Binance Coin (BNB).
Bitcoin, which stayed at around $35,000, had only a two percent increase over the week. Due to the meager gain, its market dominance has fallen below 50 percent, causing other cryptocurrencies to rise.
Among other digital coins, Neo (NEO) and KuCoin (KCS) have seen significant increases, going up by 14 percent and 11 percent, respectively. On the other hand, Solana (SOL) has slowed down in its upward movement, and Elrond (EGLD) experienced an eight percent drop in one day, even though it had gone up by nearly 50 percent in a week.
XRP’s recent price increase is linked to growing interest from big investors and Ripple’s clearance to operate in Georgia and Dubai. Additionally, the increasing holdings of XRP by large investors, known as “whales,” are believed to have a positive impact on its price.
Despite some ups and downs, XRP reached its highest value in three months when it went up 23 percent against Bitcoin last week. According to the crypto analysis platform Santiment, the number of wallets with XRP holdings between 100,000 and 1 billion XRP has reached its highest level in 2023.
Innovative approach to Web3
Launched in 2021, Ripple’s XRP Ledger (XRPL) has become known for its innovations and reliability in the crypto industry. It has been adopted in various fields because of inexpensive transactions, fast settlement times, scalability, and eco-friendly features.
Despite its technological progress, the creators of the XRP token, Ripple Labs, faced legal challenges, especially with the U.S. Securities and Exchange Commission (SEC).
To strengthen Web3 infrastructure, Ripple acquired Fortress Trust on September 8. This financial institution has been supporting blockchain innovators, from big companies to small fintech startups, with financial, regulatory, and technology infrastructure for Web3.
Fortress Trust is an important part of the infrastructure, helping with payments, asset tokenization, and other services that make it easier for business clients to launch and grow their blockchain-based services.
Ripple’s acquisition of Fortress Trust is a way to expand its business and work together to improve the market. This investment in the parent company, Fortress Blockchain Technologies, and its FortressPay services aims to combine Ripple’s global technology to provide innovative payment solutions for business customers around the world.
Ripple’s legal battles
The declaration on July 13 that XRP is “not a security” was a crucial moment in Ripple’s journey, particularly given the ongoing legal battle with the SEC since late 2020.
In the lawsuit, Ripple Labs and its executives were accused of trading $1.3 billion in XRP tokens as securities without proper registration. Ripple defended itself, arguing that the SEC’s assessment was biased.
Ripple CEO Brad Garlinghouse said the court’s decision was a victory for Ripple and a milestone for the broader crypto market. Furthermore, he expressed hope that the decision would eventually be seen as a turning point for Congress to take action and establish clear regulatory guidelines for crypto in the U.S.
This decision is expected to create a precedent for the regulation of other digital assets, tokens, and securities in the country.