- Last week, Ripple invoked the Terraform ruling to cut down on the penalty demands from the SEC, with the agency proposing a new fine of $102 million, which Ripple wants reduced to $10 million.
- The XRP price has rebounded in the past week and, with a 5% gain in the past day, was the only top ten crypto in the green as most coins get off to a bad start to the new week.
XRP has kicked off the week with a significant rise, defying the broader market where most coins slid further after a slow weekend even as Ripple continues to fight for a lower fine from the Securities and Exchange Commission (SEC).
XRP trades at $0.5159, gaining 5.4% in the past day and 3.6% in the past week. This is the highest it has traded after its drastic drop on June 7 and is a 10% rise from its monthly low of $0.4679, which it hit on Friday. Trading volume rebounded by 60% to hit $1.47 billion, the fifth highest for non-stablecoin cryptos.
XRP’s gains are the highest among the top 100 coins, four times higher than those of second-placed TRON, which rose by 1.56%. Most major coins were in the red in the past day, with Bitcoin and Ethereum losing 1.4%. Avalanche, Shiba Inu, Chainlink, NEAR, Pepe, ICP, and Hedera all lost over 5%, with the overall market cap dipping 2.2% to $2.38 trillion.
One key factor behind XRP’s turnaround is an increase in institutional interest. In the past week, XRP investment funds noted $1.1 million in inflows, marking the second consecutive week of positive flows for the token.
This is more impressive when you consider that Bitcoin funds lost over $600 million last week and that only Ethereum at $13.1 million registered higher inflows in the entire crypto space, according to CoinShares data. This month, XRP has recorded higher inflows than Solana, BNB, Litecoin, Chainlink, and Cardano.
Ripple vs SEC’s Impact on XRP: Same Pattern, Higher Stakes
Exactly a year ago, a similar phenomenon was in play. In anticipation of a positive ruling in the SEC vs. Ripple lawsuit, institutional investors started accumulating XRP. In July, they were awarded when a court ruled that XRP wasn’t a security. The token doubled in price in one day, and the institutional investors made millions of dollars.
This time, the stakes are higher. As Crypto News Flash reported, the summit is within sight for the longest-running crypto lawsuit. Last week, the two parties filed motions on the remedies—Ripple invoked the Terraform lawsuit and the precedent the SEC has set for crypto fines. Shortly after, the SEC responded, stating that considering the Terraform case, it would be demanding $102 million.
However, Ripple fought back, citing a precedent set by a lawsuit that involved a Florida investor, Robert Morrison, and the National Australia Bank. The case went all the way to the Supreme Court, which determined that the SEC has no jurisdiction over securities sold to non-US investors. If Ripple excludes XRP sold to foreign investors, the penalty could be reduced significantly, with the company’s legal team proposing around $10 million.
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