Cryptocurrencies Declines After a Series of Gains with The Support of Ripple’s Legal Victory
Minor declines have returned to the cryptocurrency market after gains in many cryptos supported by the partial judicial victory achieved by XRP token developer Ripple Labs.
Bitcoin ended yesterday’s session down by 0.35% and continues to decline also this morning slightly by 0.2%, as well as Ethereum, which fell by 0.62% yesterday, in addition to a slight decline this morning as well. Also, prominently, the Solana token fell by 2.26% yesterday, in continuation of the decline after the strong gains that it witnessed on Friday, with it reaching the level of $33.3 at its height, which is the highest level since November of last year.
As for Ripple, the price of the XRP token fell to levels of $0.743 today, after it reached the level of 0.9337 on Friday, which was the highest level since March of the year 2022. Trading volume also declined to about $2.4 billion, after reaching $11 billion on Friday.
The yearly record high for XRP price and trading volume was after a Southern District Court judge in New York sided with both of Ripple Labs and the US Securities and Exchange Commission (SEC). The verdict was that XRP token sales to retail customers were not in the form of a security (and considered as a commodity) and therefore contrary to the SEC’s claim that Ripple Labs had offered unregistered securities.
On the other hand, the ruling was not in favor of the SEC’s claim that XRP sales to institutional investors are indeed unregistered securities, and therefore there is still a long way to go for Ripple Labs. The case filed by the authority against Ripple Labs, led by CEO Brad Garlinghouse, dates back to late 2020, after the company sold the equivalent of $1.3 billion in XRP.
Garlinghouse said he hopes to lure customers back into Ripple Labs’ payments network that facilitates low-cost cross-border payments and fast liquidity solutions for institutions, after the company has already lost large clients such as Bank of America, which halted a pilot project using XRP in the wake of lawsuits. which was set up against Ripple Labs.
With these new positive developments for the cryptocurrency market, Cathie Wood, the CEO and founder of Ark Invest, a leading supporter of the development of the cryptocurrency market and revolutionary fintech, has expressed her great optimism after the victory achieved by Ripple, which may benefit Coinbase, in whose shares Kathy Wood is investing.
These developments also come shortly after BlackRock, the largest asset management company in the world, filled to establish the first spot Bitcoin ETF. This move came to restore some positive sentiment to the cryptocurrency market after the recent lawsuits filed by the SEC against Coinbase and Binance.
