XRP market capitalization has lost over $2 billion in seven days following a court ruling that could impact its legal status.
In the most recent twist of the crypto tides, over $2 billion has evaporated from XRP’s once-ascendant market capitalization within the last seven days.
According to data from market tracker CoinMarketCap, XRP had a market cap of over $37 billion as of July 30 while trading above $0.7. However, at least $2.3 billion of that market share has disappeared as of today.
Specifically, XRP now exchanges hands for around $0.66, with a significant seven-day cumulative decline of over 7%. This puts its market cap at $34.87 billion. Similarly, its once-formidable 24-hour trading volume may be crashing below the $1 billion value with the continuous downtrend.
As reported by The Crypto Basic, XRP dropped 29.1% from the $0.9380 high on July 13.
Why’s XRP Crashing?
As The Crypto Basic reported, XRP’s value started declining this week as a federal court rejected the previous victory granted to Ripple.
According to a former SEC official, the regulator had implored District Judge Jed Rakoff to eschew the rationale propounded by US District Judge Analisa Torres in the Ripple case. Interestingly, the following court ruling reflected this sentiment.
In particular, Judge Rakoff refuted the differentiation between public and institutional sales, a critical aspect of the Ripple proceedings. He ruled out that purchasers engaging in secondary transactions were bereft of reasonable grounds to anticipate comparable outcomes.
This pivotal shift underscores the SEC’s argument. Additionally, the statements resonate as a departure from the status quo and herald a potential shift in the legal view of XRP.
However, Ripple’s Chief Technology Officer, David Schwartz, offered his perspective on the court statements. Schwartz stated that the court’s decision seemed intricately linked to the unique attributes of the specific case, which is not representative of how cryptocurrencies work.
Schwartz further suggested two plausible interpretations. The worst-case scenario involved the court’s departure from Ripple’s ruling due to supplementary assessments beyond the Howey test.
However, the best case interpretation is that the court is arguing it disagrees with the view that it should follow the Ripple decision.
As reported by The Crypto Basic, Deaton today explained in detail where the judge in charge of the Terra lawsuit wrongfully addressed Judge Torres’ ruling in the SEC v. Ripple case.
The General Counsel at Crypto Council for Innovation commented on the Terra verdict, saying Judge Rakoff’s decision in the case does not contradict Ripple’s ruling.