Surpassing Bitcoin Gains, XRP Soars 17% as the Ripple-SEC Case Closes

In the last day, open interest on XRP-tracked futures increased by $200 million and trading volumes nearly tripled.

After a settlement in the lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) was reached, XRP shot up 17%. Its price increased from 50 cents to 65 cents as a result, and trade volumes significantly increased.

As part of the settlement, Ripple agreed to pay $125 million in civil penalties and to an injunction against future violations of securities laws. However, the SEC is expected to file an appeal, which could prolong the legal procedures.

Throughout July, cryptocurrency traders generally anticipated a settlement, since the tokens attracted a lot of interest from South Korean markets and outperformed gains in major tokens on many occasions, according to reports.

A federal judge issued an injunction against future violations of securities laws and ordered Ripple to pay $125 million in civil penalties on Wednesday. Despite the fact that the lawsuit is now over, the SEC is anticipated to appeal the decision, which would probably prolong the legal proceedings.

Markets responded favorably to Ripple's settlement as XRP prices shot up from 50 cents to 65 cents following the decision, and trading volumes surged from Tuesday's $1.2 billion to $4.2 billion in the last day.

Therefore, the $6 million short liquidations on XRP-tracked futures indicate that the moves were driven by spot trading.

In the meanwhile, following the verdict, open interest—that is, the quantity of unsettled futures contracts—on XRP-tracked futures increased by $200 million, suggesting fresh capital was entering the market. More than 60% of these traders, according to the data, have a long bias and anticipate future price increases.