Last week, Ripple used the Terraform ruling to push back against the SEC’s penalty demands, with the agency suggesting a new fine of $102 million, which Ripple is seeking to reduce to $10 million.
In a surprising turn of events, XRP has seen a resurgence in the past week, with a 5% increase in the last day, making it the only top ten cryptocurrency in positive territory as most coins struggle at the start of the new week.
XRP has started the week on a high note, defying the overall market trend where most coins have continued to decline following a slow weekend, all while Ripple battles for a lower fine from the Securities and Exchange Commission (SEC).
Currently trading at $0.5159, XRP has gained 5.4% in the last 24 hours and 3.6% in the past week. This marks a significant recovery from its steep drop on June 7 and a 10% increase from its monthly low of $0.4679 reached on Friday. Trading volume has also surged by 60% to reach $1.47 billion, making it the fifth highest for non-stablecoin cryptocurrencies.
XRP’s gains outshine those of the top 100 coins, with its increase being four times higher than the second-placed TRON, which rose by 1.56%. While most major coins experienced losses in the last day, with Bitcoin and Ethereum dropping by 1.4%, XRP’s resilience stands out. Other cryptocurrencies like Avalanche, Shiba Inu, Chainlink, NEAR, Pepe, ICP, and Hedera recorded losses of over 5%, resulting in an overall market cap decrease of 2.2% to $2.38 trillion.
One of the key drivers behind XRP’s recent performance is the growing institutional interest in the cryptocurrency. XRP investment funds have seen inflows of $1.1 million in the past week, marking the second consecutive week of positive flows for the token. This is particularly noteworthy given that Bitcoin funds lost over $600 million last week, with only Ethereum seeing higher inflows at $13.1 million across the entire crypto space, as per data from CoinShares. In June, XRP recorded more significant inflows than Solana, BNB, Litecoin, Chainlink, and Cardano.
The ongoing legal battle between Ripple and the SEC has had a substantial impact on XRP, following a similar pattern to a year ago but with higher stakes. In anticipation of a positive outcome in the SEC vs. Ripple lawsuit, institutional investors have once again begun accumulating XRP, reminiscent of what happened last year when the token doubled in price in a single day after a court ruling that XRP was not a security.
As the lawsuit nears its conclusion, both parties have filed motions on potential remedies, with Ripple referencing the Terraform lawsuit and the SEC proposing a hefty fine of $102 million. However, Ripple is pushing back, citing a precedent set by a lawsuit involving a Florida investor and the National Australia Bank, which could significantly reduce the penalty to around $10 million if XRP sales to foreign investors are excluded.
