According to Kaiko, a digital asset research company, data from crypto exchanges indicates that large traders in the US were responsible for driving the demand for XRP after Ripple’s partial court victory over the U.S. Securities and Exchange Commission in July.
XRP price analysis
Kaiko’s analysis shows that Upbit, a Korean exchange, and OKX, a Seychelles-based exchange, experienced the most selling pressure for XRP in August.
However, Coinbase, which is the top crypto exchange in the US, experienced higher levels of buying. Additionally, Kaiko noticed that XRP’s average trade size on Coinbase increased, surpassing all top ten alternative coins except Ethereum.
“This could suggest that buying demand was driven by large traders in the US as investors re-gained access to the token after the July court ruling.
Overall, the share of XRP traded on US markets remains lower than on offshore exchanges. XRP is only the sixth-most-traded altcoin in the US by cumulative trade volume while it tops the list on offshore markets.”
In 2020, the SEC filed a lawsuit against Ripple, a payments company based in San Francisco. The SEC claimed that Ripple was selling XRP without registering it as a security.
However, in July, District Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP on the open market did not qualify as security offerings despite the SEC’s claims.
The judge did agree with the SEC that Ripple’s direct sale of XRP to institutional buyers was a securities offering.
Following the ruling, the value of XRP surged from $0.47 to around $0.82 in July. However, the asset has since lost most of its gains and is currently trading at around $0.504.
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