Was the SEC’s lawsuit a factor in XRP’s Q2 volumes?

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XRP’s price action has seen a significant increase, with a 6% increase in the last 24 hours. At the time of writing, the sixth-largest token was trading just below $0.75. Despite Ripple’s ongoing legal battle with the SEC, the fintech firm has painted an impressive picture in its latest Q2 2021 Market report.

A surge in trading volume

According to the abovementioned report, the daily trading volume for XRP (Ripple’s native token) was high despite the ongoing legal suit involving Ripple and the SEC. As per the same, the daily trading volume during Q2 2021 doubled to $4.49 billion from $2.26 billion, recording a 98% surge.

As shown in the chart, the price of XRP has risen to a multi-year high of $1.96, reflecting market sentiment. During the same time period, Bitcoin reached an all-time high of $64,800 in mid-April.

This rally, however, did not last long. Within a week, XRP had dropped by 30% from its local high and had succumbed to the broader crypto-market correction in mid-May.

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Why did this happen?

According to the aforementioned report,

“There was no shortage of events that were reported to contribute to market volatility in Q2 — notably ransomware attacks, environmental concerns, Elon Musk’s tweets, and regulatory scrutiny, among others. The second quarter of 2021 saw significant increases in crypto market capitalization followed by a steady decrease.”

XRP’s volatility spiked to 11.5 percent. In fact, it was more volatile than BTC (5.0%) and ETH (7.3%).

Nevertheless, sales statistics showcased a positive scenario under Q2 sales and purchases as can be seen here.

Source: Ripple

The nett purchase amount increased to $157.92 million from $150.34 million in the previous quarter (up by 5 percent ).

When viewed in a broader context, the aforementioned figures indicated a positive trend for Ripple. Despite low liquidity, Ripple recently launched its ODL services in Japan, with plans to expand into the “fast-growing” APAC region.

The SEC vs. XRP lawsuit continues…

The lawsuit is currently in the discovery phase. According to the judge’s order, the deadline for conducting fact discovery has been extended to August 31, while the deadline for expert discovery has been extended to October 15.

See also  The SEC is nearing agreements with US BitConnect proponents for millions of dollars.

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