Ripple Token XRP Market Cap Crossed $ 20 Billion Amid Crypto Rally

Photo by Linus Nylund on Unsplash

As a result of the recent market rise for digital currencies as a whole, the value of the native XRP token that Ripple issues have recently reached $20 billion.

AS of writing this article, t the value of XRP decreased by 1.24% over the past twenty-four hours, while the values of Bitcoin (BTC) increased by 0.15 & Ether (ETH) decreased by 0.66%. During this time period, the value of Binance Coin (BNB) went up by 0.24%, while the value of Cardano (ADA) went down by 1.23%.

Ripple Token Xrp Market Cap Crossed $ 20 Billion Amid Crypto Rally
xrp price chart. Source: investing. Com (1. 1)

 

The value of XRP has been steadily climbing over the past week, and it is currently headed toward $20 billion. Because of the recent spike, the token is now getting closer to a horizontal resistance level. It should be met with substantial selling pressure whenever it reaches this level.

On the other hand, if the price of XRP surpasses this price ceiling, the cryptocurrency might start another continuous surge.

Investors and traders will be keeping a close eye on how the price of XRP develops to pick up any additional clues on its favorable trend.

Following the ongoing crisis in the banking sector, a rising number of investors are gravitating toward digital currencies in general, including XRP.

As a result of the recent failures of Silicon Valley Bank (SVB) & Signature Bank, investors are scrambling to acquire assets with a higher level of risk. In spite of their notoriously unstable nature, digital currencies are now maintaining their value, with the stock correlation of Bitcoin at its lowest point in months.

As a result of these changes, more traditional investors have begun to focus their attention on the nascent asset class despite the crisis in the banking industry.

Presumptions that the Federal Reserve could postpone or pause further rate hikes contributed to the current cryptocurrency rally by providing additional momentum.

Analysts and observers are of the opinion that the top bank will not raise interest rates by more than 25 basis points in the upcoming meeting.

 

Reports indicate that Ripple is in a healthy financial position

Amid the crisis in the banking industry, Ripple CEO Brad Garlinghouse insisted one week ago that the company was in a “solid financial position.” Even though it was exposed to SVB, Ripple did not anticipate any “disruption to [its] day-to-day business,” according to Garlinghouse.

The chief executive officer of Ripple revealed that the money transfer service maintained a cash balance with SVB, which is one of its banking partners. But, Garlinghouse also highlighted that Ripple has substantial money and a wider network of other banking partners as an additional point of emphasis.

In addition, he noted the breach of confidence that the financial system had with investors, pointing out that the system was highly susceptible to rumors. Garlinghouse used the ongoing upheaval in the banking industry as proof that this susceptibility exists in order to drive home his thesis.

The statements made by the chief executive of Ripple regarding SVB exposure were met with various responses from the community.

Some looked more concerned about the Ripple funds stuck at the failing bank, while some expressed gratitude for the comforting news.

 

Ripple’s CEO anticipates the SEC lawsuit will be resolved in the first half of 2023

At the beginning of March, Garlinghouse expressed his optimism that Ripple’s protracted legal conflict with the SEC would be resolved in this calendar year. According to him, the litigation against the SEC might be settled by the first half of 2023. Garlinghouse addressed the media and elaborated as follows:

“Almost two and a half years have passed since the beginning of that legal proceeding. We have made every effort to move forward at the quickest pace we are capable of. The action has been completely briefed in front of the federal court, and we do expect a ruling to be rendered in 2023 at the earliest.”

Ripple and two executives were accused by the SEC in December 2020 of selling unregistered XRP tokens, and this is when the court battle got underway.

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