Ripple coin XRP recently hit $20 billion due to the broader crypto market upswing from the banking crisis.
Ripple‘s native XRP token recently surpassed $20 billion in market value following a broader digital currency market rally. According to reports, XRP gained roughly 5% over the last 24 hours, with Bitcoin (BTC) and Ether (ETH) experiencing gains of 2.41% and 1.62%, respectively. During this period, Binance Coin (BNB) also increased by 0.72%, while Cardano (ADA) gained 1.62%.
XRP $20 Billion Development Culmination of Weeklong Upward Price Trajectory
XRP has been on an upward trajectory in the past week, en route to $20 billion. This recent surge now sees the token approach a horizontal resistance level where it should encounter significant selling pressure. However, should XRP price scale this price ceiling, it could embark on another sustained momentum. Investors and traders would be closely monitoring XRP’s price development for additional cues on its positive trajectory.
XRP, and digital currencies in general, are benefitting from increased investor preference following the ongoing banking crisis. The recent collapses of Silicon Valley Bank (SVB) and Signature Bank have seen investors scramble for higher-risk assets. Despite their fabled volatility, digital currencies are currently holding steady, with BTC’s stock correlation at its lowest in months. These developments have further helped to draw more mainstream investors towards the fledgling asset class amid the banking fiasco.
The recent crypto rally also gained momentum on speculations that the Federal Reserve could slow or pause further rate hikes. Observers and analysts believe that the apex bank would increase rates next by no more than 25 basis points.
Ripple Reportedly in Strong Financial Shape Despite SVB Exposure
Last week, Ripple CEO Brad Garlinghouse maintained that the company was in a “strong financial position” amid the banking crisis. According to Garlinghouse, Ripple expected no “disruption to [its] day-to-day business” despite its exposure to SVB. The Ripple CEO explained that the remittance network held some cash balance with SVB as a banking partner. However, Garlinghouse also pointed out that Ripple has sizable funds with a broader network of other banking partners. Furthermore, he noted the breach in the financial system’s trust with investors, given the system’s high susceptibility to rumors. To drive his point home, Garlinghouse pointed to the ongoing banking turmoil as proof of this susceptibility.
The Ripple chief executive’s statements on SVB exposure elicited mixed reactions from the community. While some expressed gratitude for the reassuring update, others appeared more concerned about the Ripple funds trapped in the failed bank.
Ripple CEO Expects SEC Lawsuit to Reach Resolution in First Half of 2023
At the beginning of March, Garlinghouse said he expected Ripple’s long-drawn-out legal battle with the Securities and Exchange Commission to end this year. He said the lawsuit with the SEC could resolve within the first six months of 2023. In a media session, Garlinghouse explained:
“It’s been almost two and a half years since that litigation began. We’ve tried to move forward as quickly as we possibly could. The litigation was fully briefed in front of federal court, and we do expect a decision certainly in 2023.”
The legal tussle began in December 2020 when the SEC alleged that Ripple and two executives sold unregistered XRP tokens.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
