XRP Overtakes BNB Token, Ranks 4th in Market Cap, Revolutionizing Payments

 In the last day, XRP's market cap increased by more than 60% to $41.44 billion.

The cryptocurrency XRP, which focuses on payments, has eclipsed BNB token to rank fourth among all digital assets in terms of market capitalization.

At the time of writing, XRP had a market cap of $41.44 billion, up 66% in the previous day alone. The market value of BNB increased by 6.5% to $40.57 billion. The cost of XRP skyrocketed from 47 cents to around 78 cents.

The rise of the cryptocurrency has been fueled by Ripple Lab's partial triumph in a protracted legal dispute with the U.S. Securities and Exchange Commission (SEC) over the sale of XRP.

Ripple's offer and sale of XRP on digital asset exchanges did not constitute offers and sales of investment contracts, as claimed by the SEC, the District Court for the Southern District of New York said on Thursday.

The Court, however, ruled that Ripple had broken securities regulations by selling XRP directly to institutions, hedge funds, and other parties for more than $700 million. After selling XRP worth $1.3 billion, Ripple was sued by the SEC in late 2020 for selling unregistered securities. The XRP cryptocurrency remained under pressure as a result of the regulatory action and some exchanges delisted it, while the overall market closed that year on a high note.

The first portion of the decision has made it possible for centralized exchanges to once again list XRP. Gemini is looking towards listing XRP for both spot and derivatives trading, whereas has already taken this action.

Townsend Lansing, the head of product at CoinShares, said that the second half of the judgement has concluded that XRP is a security.

"The Court determined that Ripple had broken securities regulations, particularly in regards to direct sales to institutional investors. As a result, XRP is not only seen as a security but also the legality of its offering has come into question. The Court's confirmation that the law was broken with relation to these sales represents a significant success for the Securities and Exchange Commission (SEC) and establishes a precedent for its legal proceedings against other cryptocurrencies, according to Langsing in an email.

"It is crucial to remember that institutional investors that bought directly from Ripple may become prospective underwriters in class-action lawsuits. If well-known venture investors were involved, this is an area to pay great attention to, Langsing continued.

The price increase and the optimistic positioning in the perpetual futures market show that traders have not yet concentrated on the second portion of the verdict.

With no expiration or settlement date, perpetual futures are similar to ordinary futures contracts.

According to Coinglass data, global volume-weighted perpetual futures funding rates have risen to their highest levels at least since December. Open interest-weighted rates are at their highest point in four months.

Both imply that the leverage is clearly biased in favor of the bullish side.
In the perpetual futures market, funding rates refer to the regular transfers of an asset between holders of bullish long and bearish short positions. A high funding rate indicates that longs are in control and are paying shorts to maintain their open positions.

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