In the most recent turn of the cryptocurrency tides, more than $2 billion has vanished from XRP’s once-ascendant market value over the past seven days as a result of a court decision that may affect its legal standing.
Data from market tracker CoinMarketCap shows that as of July 30, XRP had a market worth of over $37 billion and was trading above $0.7. However, as of today, at least $2.3 billion of that market share has vanished.
With a notable seven-day cumulative loss of nearly 7%, XRP is currently traded for approximately $0.66. Thus, its market capitalization is $34.87 billion. As a result of the ongoing slump, its once-impressive 24-hour trading volume may plummet below the $1 billion mark. According to reports, XRP fell 29.1% from its high of $0.9380 on July 13.
Related reading: XRP Accounts Hits Over 3.2M, Adds 1,162 New Accounts daily
Federal Court Rejects XRP’s Previous Victory
As previously mentioned, this week saw a decline in the value of XRP as a federal court overturned Ripple’s earlier triumph. In the Ripple case, US District Judge Analisa Torres’ argument was rejected by District Judge Jed Rakoff, according to a former SEC staffer. The regulator had urged the judge to do the same. Unexpectedly, this viewpoint was echoed in the subsequent court decision.
Judge Rakoff disputed a key element of the Ripple proceedings, the distinction between institutional and public transactions. He disproved the idea that buyers who engaged in secondary transactions lacked the justification for expecting outcomes that were comparable.
This crucial change emphasizes the SEC’s position. The statements also mark a break from the status quo and hint at a future change in how XRP is perceived legally.
Schwartz Response to Court Statements
David Schwartz, chief technology officer at Ripple, provided his opinion on the court declarations. According to Schwartz, the court’s judgment appeared to be closely related to the particulars of the particular case, which is not indicative of how cryptocurrencies operate.
Schwartz offered two additional reasonable explanations. The worst-case scenario entailed the court deviating from Ripple’s decision as a result of further evaluations outside of the Howey test. The court is stating that it does not agree with the notion that it should follow the Ripple ruling, according to the best possible interpretation.
The court overseeing the Terra action, as was previously reported, erroneously referred to court Torres’ decision in the SEC v. Ripple case, according to Deaton’s detailed explanation today. According to the General Counsel of Crypto Council for Innovation, Judge Rakoff’s decision in the case does not conflict with Ripple’s judgement, which was discussed in relation to the Terra verdict.