XRP, the native cryptocurrency of Ripple, is experiencing a remarkable rally in contrast to the broader crypto market’s slowdown. Several factors contribute to this surge, primarily stemming from positive developments within Ripple and favourable market conditions.
- FTX Bankruptcy Case Boosts Ripple’s Fortunes:
- Ripple is set to claim approximately $11 million in the aftermath of the FTX collapse, according to a recent court filing.
- The claim, filed by Ripple Singapore against Alameda assets, indicates that Ripple will receive a payout from FTX in the event of a distribution.
- This positive development adds to Ripple’s already outstanding year and fosters a bullish sentiment around XRP.
- Kraken Backs Ripple in Lawsuit:
- Ripple is currently embroiled in the lawsuit titled Zakinov v. Ripple, which questions the security status of the XRP token.
- Kraken, one of the world’s largest crypto exchanges, has expressed support for Ripple in this legal battle.
- The exchanges are resisting requests to share customer data related to XRP trading, with Kraken arguing that compliance could be perceived as siding with the plaintiff.
- Historical Bullish Trend in December:
- Historical data reveals that December has consistently been the best-performing month for XRP.
- The altcoin has shown an average monthly return exceeding 100% compared to other months.
- This historical trend suggests that XRP is well-positioned for a strong performance as the year concludes, contributing to the current rally.
- Talks of XRP Token Burn Intensify Speculation:
- Rumours are circulating about a potential burn of all XRP tokens held by Ripple in escrow.
- While a significant burn could lead to a surge in XRP’s price, the market is currently driven by speculative discussions, adding to the overall positive sentiment.
- Current XRP Price and Performance:
- As of the latest update, XRP is trading at $0.64, marking a 4% increase in the past 24 hours.
- The coin’s positive momentum is notable amid a broader market trend characterized by spots of losses in various cryptocurrencies.
Ripple’s ongoing legal victories, favourable developments in the FTX bankruptcy case, historical trends favouring December, and speculative discussions about a potential token burn are collectively propelling XRP’s price on a bullish trajectory. Investors are closely monitoring these developments as XRP continues to outperform other cryptocurrencies in the market.