‘Ripple is operating as if it has already lost’- What could this mean for XRP
Setting up a business is hard. Setting up a business in an extremely regulated sector is harder. Fighting to protect a business that a regulator deems to be run in contravention of regulatory provisions is the hardest. If you want to look for an example- refer to SEC vs. Ripple case.
The U.S. Securities and Exchange Commission(SEC) instituted a multi-billion-dollar lawsuit against Ripple and two of its executives in December 2020.
The cause of action according to the SEC, was that the sales of XRP conducted by Ripple from 2013 were illegal. The regulator submitted that the sales amounted to the offering of unregistered security rather than a sale of digital tokens as claimed by Ripple.
In spite of this seemingly prolonged lawsuit, Ripple contends that XRP holders continue to remain bullish. However, is this apparent?
Call the Paramedics!
A look at XRP price statistics revealed that the coin reached an ATH of $3.34 four years ago on 4 January 2018. By 22 December 2020 when the lawsuit was filed, the price of the coin had gone down by 84% to $0.53. At the time of writing, the price of XRP stood at $0.06603- an 82% from its ATH.
The market capitalization for the coin at the time of writing was $31.65b, registering a 24-hour decline of 4.46%. At a market cap of $20.36b when the suit was filed, the coin has recorded a spike of over 50%.
However, trading volume for XRP has suffered major decimation since the lawsuit was instituted. Standing at 13.16b on 22 December 2020, XRP has lost over 80% of its trading volume. At the time of the press, the trading volume for the cryptocurrency stood at 2.18b.
Even more sad news.
On-Chain analysis for the XRP revealed that Ripple indeed has seen better days. Recording a high of 69.21 on 4 September 2021, the development activity for the token has since gone on a downward spiral.
It stood at 13 at the time of this writing. In contradistinction to what the coin recorded on 22 December 2020 at 5.93, one can say it has barely performed well.
On a social front, the token made no progress. At a Social Dominance of 3983 on 22 December 2020, the coin bled over 90% as it stood at 311 at the time of this press.
Social Volume on the other hand appeared to have fluctuated brazenly recording numerous highs and lows over the same period. It stood at 313 at the time of writing.
Since the suit was instituted, till date, XRP recorded many instances of short-term sell pressure. With a Supply on Exchange standing at 62.65m at the time of writing, the Supply on Exchange jumped by 6% since the suit was filed.
Not a very dramatic increase. Also, the XRP recorded no significant accumulation as no spike was noted in the supply outside of exchanges.
Better days ahead?
In a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse noted that his company is already operating as if it has lost the fight with the U.S. Securities and Exchange Commission.
Now, with plummeting prices, there is every possibility that the XRP might still face even tougher days ahead.