Cryptoverse: Ripple effect as explosive XRP leads market charge

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XRP has become the unlikely white knight of crypto, thwarting its regulatory foes and dragging the market out of the doldrums. The price of XRP popped 78 per cent after a U.S. judge ruled on July 13 that issuer Ripple Labs' sales of the token on public exchanges didn't violate securities law, and it's still u

XRP has become the unlikely white knight of crypto, thwarting its regulatory foes and dragging the market out of the doldrums.

"It's a big milestone for the altcoins sector, it is fair to assume that if XRP is not a security, barely any other digital asset can be considered that way," said Matteo Greco, analyst at fintech and blockchain investment firm Fineqia International. The cheer spread throughout cryptoland, with bitcoin - which is generally considered a commodity rather than a security - touching a 13-month high after the ruling though it has since dropped back down below $30,000.It's certainly not all smooth sailing for Ripple, or altcoins more generally, though. The SEC is likely to appeal the ruling, according to some legal experts, while trading volumes for the crypto space in general are still low compared to a year ago.

The company was relisted by several crypto exchanges in the wake of its legal win, and some institutional investors are taking note; a Coinshares survey of 51 digital asset managers managing $900 billion in assets found 10 per cent of investors are investing in altcoins, versus 5 per cent last month, with some reducing positions in ethereum and bitcoin in favor of smaller altcoins like XRP and polkadot.

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