{"id":36420,"date":"2023-07-16T13:00:06","date_gmt":"2023-07-16T17:00:06","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/ripples-victory-in-court-drives-up-crypto-trading-volumes\/"},"modified":"2023-07-16T13:00:08","modified_gmt":"2023-07-16T17:00:08","slug":"ripples-victory-in-court-drives-up-crypto-trading-volumes","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=36420","title":{"rendered":"Ripple\u2019s Victory in Court Drives up Crypto Trading Volumes"},"content":{"rendered":"
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Ripple<\/strong>‘s win against the US\u00a0Securities and Exchange Commission<\/strong>\u00a0has boosted crypto trading volumes across spot exchanges.<\/p>\n

Spot trading volumes on crypto exchanges surged to $16.56 billion on Friday from Wednesday’s $12.74 billion, a growth of around 30% in just two days, according to The Block’s data dashboard.<\/p>\n

Data from\u00a0CoinMarketCap\u00a0<\/strong>also shows a jump in trading volume over the past week, particularly on Friday, when almost all major centralized exchanges saw a sharp spike in volume.\u00a0<\/p>\n

The spike was largely attributed to the excitement around\u00a0XRP<\/strong>\u00a0token after a\u00a0US court ruled in favor of Ripple\u00a0in the ongoing lawsuit brought by the SEC, claiming that selling XRP on exchanges in itself does not constitute an investment contract.\u00a0<\/p>\n

The ruling, issued by the\u00a0District Court for the Southern District of New York<\/strong>, stated that the \u201coffer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts.\u201d<\/p>\n

However, the federal judge also ruled that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey Test.<\/p>\n

Nevertheless, the verdict led to an initial surge in the price of XRP, which rallied over 70%. The sudden rush to buy XRP lead to a spike in volume that overwhelmed some crypto exchanges.<\/p>\n

For one,\u00a0Uphold<\/strong>, a US-based crypto exchange, experienced technical difficulties and temporarily went down due to the unprecedented volume surge.\u00a0<\/p>\n

Uphold has been among the few crypto exchanges that had continued to offer sales of the cryptocurrency.<\/p>\n

\u201cYes, we went down but no platform could cope with the 50x spike in volume we saw today,\u201d Uphold said in a tweet addressing the situation.<\/p>\n

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Furthermore, other major crypto exchanges, including\u00a0Coinbase<\/strong>,\u00a0Kraken<\/strong>,\u00a0Gemini<\/strong>,\u00a0Crypto.com<\/strong>, and\u00a0Bitstamp\u00a0<\/strong>have\u00a0announced plans to relist XRP.<\/p>\n

How Ripple’s Win Against SEC Could Impact Other Altcoins?<\/h2>\n

Last month, the SEC\u00a0sued both\u00a0Binance<\/strong>, the world’s largest cryptocurrency exchange, and\u00a0Coinbase<\/strong>, the largest US-based cryptocurrency\u00a0exchange.\u00a0<\/p>\n

In each case, the commission noted that several tokens listed by the exchanges are unregistered securities.<\/p>\n

These include dozens of popular cryptocurrencies like\u00a0Binance\u2019s native token BNB<\/strong>,\u00a0Solana\u2019s SOL<\/strong>,\u00a0Cardano\u2019s ADA<\/strong>,\u00a0Polygon\u2019s MATIC, Filecoin\u2019s FIL, Cosmos\u2019 ATOM, Sandbox\u2019s SAND, Decentraland\u2019s MANA, Algorand\u2019s ALGO, Axie Infinity\u2019s AXS, and Coti\u2019s COTI tokens.<\/p>\n

Since the lawsuit, these tokens had been largely in a downtrend, with some crypto exchanges even deciding to delist these tokens.<\/p>\n

However, Ripple’s win against the SEC had a positive impact on these altcoins as investors speculated whether the SEC would change its stance against these cryptocurrencies.<\/p>\n

Solana, Cardano, and\u00a0Stellar Lumens (XLM)<\/strong>\u00a0rallied on the news, gaining around 20% on the day.\u00a0<\/p>\n<\/p><\/div>\n