Ripple managed to grab crypto news headlines recently by winning its case against the SEC. US District Judge Analisa Torres partially ruled in favor of Ripple, stating that XRP is not a security. As a result, XRP managed to gain the interest of investors and institutions alike. However, now that the news has died down, XRP trading volumes are shrinking, and the token’s price is returning to normal. With this, it appears investors are now turning their attention to XRP Futures contracts.
Following Ripple’s triumph, many investors immediately put their money into XRP in anticipation of an increase in the token’s price, which did, in fact, happen. The day after the ruling, trading volume for XRP reached $3.9 billion, according to Coingecko . However, as the hype around the case dissipated bit by bit, XRP trading volumes started to shrink, especially since the start of August 2023.
The token’s price has also been steadily dropping, valued at $0.65 at the time of publishing this article, coming down from a peak of $0.82 on July 19th.
On the flip side, data shows that open interest (OI) volume for futures contracts surged to a two-year peak of $1.19 billion on July 20. However, OI trade volumes are $786.1 million with the network not showing any signs of improvement.
XRP consistently drops in price
CCN reached out to Ripple’s CEO, Brad Garlinghouse, for commentary but did not receive a reply at the time of publishing.
Following’s Ripple’s triumph over the SEC, XRP was relisted on many exchanges from which it had initially been removed to avoid SEC scrutiny. Coinbase, the biggest US-based exchange, relisted XRP and celebrated Ripple’s victory as its own.
Coinbase itself is dealing with its own SEC lawsuit. There’s no doubt that the company’s lawyers will use Judge Torres’ ruling as a basis to negate the SEC claim that the company traded in ‘unregistered securities’.
Crypto legal expert John Deaton highlighted that the company had already been approved for an IPO over two years ago. He also points out that it defies logic that the SEC would now come back to claim that the company is operating illegally.