- XRP surged 20% earlier this week following Ripple’s $125 million penalty.
- Robust liquidity supports XRP’s growing demand in the US.
- XRP’s recent rally forms part of sustained growth in the past year.
XRP surged 20% earlier this week after a U.S. Federal Court ruling that fined Ripple Labs $125 million for selling XRP to institutional investors. Ripple executives and supporters chose to term it as a victory, considering the SEC had initially sought a $2 billion penalty.
XRP’s recent surge reflects the growing demand for the cryptocurrency since last year’s court ruling that XRP is not a security. This ruling has triggered steady growth in XRP demand across U.S. markets.
CCData, a leading digital asset data and index provider, attributes XRP’s growing demand in the U.S. to the relatively greater liquidity offered by U.S.-based exchanges. A comparison of top XRP pairs on selected U.S. and offshore exchanges reveals a 30% variation in 1% market depth in favor of U.S. exchanges. This robust liquidity makes executing large transactions at market prices easier.
The CCData-observed scenario justifies the ongoing XRP whales’ inclination toward crypto exchanges based in the U.S. According to the digital asset data platform, trading platforms based in the U.S. now account for 14% of the global XRP volume, a scenario not seen since the last four years following a protracted litigation between Ripple and the SEC.
For context, U.S. exchanges boasted a 1% market depth of $1.12 million. CCData’s information shows this value reflected a 30% greater order book liquidity than offshore exchanges like Binance and OKX. Also, the recorded 1% market depth in U.S. platforms has increased by 53% since July last year, while offshore exchanges recorded a 43% increase over the same period.
XRP’s recent rally is an extension of the growth the crypto token has experienced in the past year, further solidified by a final court ruling that its supporters consider favorable.
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