Ripple’s XRP has experienced an 8% dip within the last 24 hours, resulting in it losing its position as the fourth-largest cryptocurrency by market capitalization. After a 96% surge following a partial legal victory against the SEC, XRP’s price dropped by 7.97% to $0.72, bringing its market cap down to $37.9 billion.
Legal Battle Outcome Boosts Market Sentiment:
After nearly three years of legal proceedings, the District Court for the Southern District of New York ruled that the offer and sale of XRP on crypto exchanges did not constitute investment contracts. However, the judge noted that the sale of XRP to institutional buyers did amount to an investment contract. While not providing the clear-cut decision anticipated, the ruling was seen as a significant victory amid ongoing regulatory scrutiny in the US.
Crypto Market Correction and Liquidations:
The global crypto market experienced a 3.5% correction in the last 24 hours, with only Shiba Inu and Optimism showing an increase in value among the top 50 assets. This correction followed a period of significant market upturn between June 12 and June 13. As a result, there were massive liquidations, with over $180 million liquidated from more than 55,000 traders. Long-position traders accounted for the majority of the liquidations, losing $139.92 million. Bitcoin and Ethereum were the most affected, with the largest liquidation involving an ETHUSDT position valued at $2.86 million on Binance.
XRP Market Cap Loss:
During the reporting hours, the XRP market cap dropped by nearly $20 million, leading to significant losses for traders.
Read More: Coinbase Suspends Staking Services in Certain US States Amid Regulatory Challenges
Conclusion:
XRP’s dip in market cap after its legal victory highlights the volatility of the cryptocurrency market. While the legal ruling provided some positive sentiment, the broader market faced a correction and experienced substantial liquidations. The ongoing regulatory scrutiny and market fluctuations continue to shape the cryptocurrency landscape.
