Ripple recently utilized the Terraform ruling to negotiate a lower penalty from the SEC, aiming to reduce the proposed fine of $102 million to just $10 million.
In a surprising turn of events, XRP, the cryptocurrency associated with Ripple, has experienced a significant rebound in the past week. Despite a tumultuous start to the new week for most cryptocurrencies, XRP managed to secure a 5% gain in the last 24 hours, making it the only top ten crypto in positive territory.
Trading at $0.5159, XRP has seen a 5.4% increase in value over the past day and a 3.6% rise over the past week. This marks a notable recovery from its sharp decline on June 7th and a 10% surge from its monthly low of $0.4679. Trading volume also saw a substantial uptick, rising by 60% to reach $1.47 billion, making it the fifth highest for non-stablecoin cryptos.
Among the top 100 coins, XRP recorded the highest gains, outperforming second-placed TRON by four times with a 1.56% increase. Meanwhile, other major cryptocurrencies like Bitcoin and Ethereum experienced losses of 1.4%. Several coins, including Avalanche, Shiba Inu, Chainlink, NEAR, Pepe, ICP, and Hedera, suffered declines of over 5%, contributing to an overall market cap decrease of 2.2% to $2.38 trillion.
One of the key factors driving XRP’s resurgence is the growing institutional interest in the cryptocurrency. XRP investment funds saw $1.1 million in inflows over the past week, marking the second consecutive week of positive flows for the token. This is particularly noteworthy when compared to Bitcoin funds, which lost over $600 million in the same period, with only Ethereum surpassing XRP with $13.1 million in inflows.
Looking back at the ongoing legal battle between Ripple and the SEC, history seems to be repeating itself with higher stakes this time around. A year ago, institutional investors accumulated XRP in anticipation of a positive ruling in the SEC vs. Ripple lawsuit, resulting in significant gains for the token. Now, as the lawsuit nears its conclusion, both parties are filing motions on the remedies, with Ripple citing past precedents to argue for a reduced penalty.
In response to the SEC’s proposed fine of $102 million, Ripple referenced a previous lawsuit involving a Florida investor and the National Australia Bank, suggesting that excluding XRP sales to foreign investors could significantly reduce the penalty to around $10 million. As the legal battle continues, the outcome remains uncertain, but XRP’s recent performance suggests a glimmer of hope for Ripple amidst the ongoing regulatory challenges.