Despite the fact that some of the happenings weren’t very good, the past seven days made for a very exciting week in the cryptocurrency industry. However, the market gained approximately $14 billion by stabilizing and consolidating. Regarding price performance, Ripple is the clear winner this week, rising by 20%. In the meantime, the CFTC filed a lawsuit against Binance and Changpeng Zhao, its CEO.
XRP is the most apparent outlier and the cryptocurrency that has performed best (at least among the top 20) over the past seven days. During the week, it completely ruled the markets and is up a whopping 20% when most other stocks struggle to trade in the green.
It will be interesting to see if XRP will continue its rally or undergo a more substantial correction. However, the week also included negative information from other sources. The U.S. Securities and Exchange Commission (SEC) Chairman, Gary Gensler, wants more money for his budget to keep cracking down on the business, which he calls “the Wild West.”
This week, XRP price unending prospects open revenue dramatically increased as financial backers bet on an expected triumph for Wave in its claim against SEC. A victory for Ripple, according to many market participants, could herald the beginning of an altcoin season and significantly impact the whole cryptocurrency industry.
Ripple’s victory would end the company’s uncertainty and set a precedent for future legal battles involving crypto. The SEC claims that Ripple sold XRP in an unregistered security offering in the case, which began in December 2020. However, Ripple has maintained that XRP is a currency rather than a security.
“XRP perpetual futures open interest more than doubled this week on bets that a possible victory in Ripple’s lawsuit against the US SEC will trigger an alt season”, Kaiko data stated.
If Ripple wins the lawsuit, it would be the first time a crypto-related business has defeated one of the industry’s most feared regulators. Because it would confirm the legitimacy of digital assets and bolster the argument that cryptocurrencies should not be treated as securities, this outcome could have far-reaching implications for the entire industry.
Additionally, a victory for Ripple in court could expedite the development of the cryptocurrency ecosystem as a whole. Other businesses in the industry would better understand the regulatory framework they must navigate by setting a clear precedent.
The industry’s growth and inflow of new investments could be fueled by this clarity, which could also encourage innovation. The interest in XRP’s perpetual futures has increased as investors anticipate the lawsuit’s outcome. The doubling of open interest reflects the market’s bullish outlook and the belief that a Ripple victory could kick off an altcoin season. Altcoin prices could rise due to investor interest growing in this scenario.
Read more:
- Will A Ripple Victory In The SEC Lawsuit Kick-Off The Altcoin Season?
- XRP Dominates Korean Crypto Exchange With Surge In Price And Trading Volume