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Whales Accumulate XRP in Anticipation of Bullish Trend

10 Apr, 2023
ripple-on-a-streak

Ripple (XRP) has been enjoying a long-running price rally, jumping a full 55% since 21 March and trading at around $0.57, its highest price since October 2022. This surge in value has been matched by daily trading volume and user activity on the XRP blockchain, with whales swooping in to scoop up even more of the popular altcoin. They're accumulating XRP in anticipation of what looks to be a favourable outcome for the cryptocurrency's parent company in the ongoing case of SEC vs Ripple.

What is XRP, and why is it valuable?

XRP is one of the top altcoins in the crypto ecosystem, currently ranking sixth by market cap. XRP was created in 2012 to serve as a faster, cheaper and more scalable alternative to Bitcoin (BTC). It can boast fast transaction speeds and very low transaction fees, making it suited to large-scale, cross-border financial operations.

In the same year, the Ripple company was established to facilitate currency exchange and payment settlements around the world using the XRP blockchain for validating transactions. Ripple has partnered with large traditional financial institutions such as Bank of America and Santander, proving the usefulness of cryptocurrencies as a tool to improve the existing banking system and generally boosting the profile of digital assets as a whole.

Although XRP can be used by anyone — the ledger code is open-source — its exchange price is often tied to the fortunes of the Ripple company, which is seen as proving the value of the currency and its underlying blockchain.

Ripple and the SEC

The Ripple company has been locked in a legal battle with the United States Securities and Exchange Commission (SEC) since late 2020, with the latter claiming that XRP is an unregistered security and thus subject to their jurisdiction. According to the SEC's definition, an asset is a security if it is sold with the expectation of gaining a profit for the buyer. Instead, Ripple has defined XRP as a commodity and, thus, not subject to securities regulations.

Ripple decided to fight the SEC's claims and, as we have previously covered, has seen some success in recent court hearings. The finance world and the crypto community especially are following the case with interest, as the outcome will most likely have far-reaching implications for the entire cryptocurrency market. If Ripple wins the case, the argument for cryptocurrencies being securities will be discredited, and other crypto projects will have less to fear from the SEC. On the other hand, a victory for the SEC will set a precedent for cryptocurrencies being considered securities and regulated as such.

XRP accumulation and what it means

Analysts have pointed to the recent spike in the daily trade volume and user activity on the XRP network as mainly caused by the actions of whales, individuals who hold thousands or even tens of thousands of XRP in their wallets. Those who already own a lot of XRP are accumulating even more, showing confidence in the cryptocurrency, driving up prices and indicating a bullish market sentiment. For reference, XRP has previously enjoyed an all-time high of $3.40, showing a high potential for growth if the bullish trend continues.

Trade XRP and more with StormGain

There's no need to let the whales have all the fun and profit. XRP is an affordable cryptocurrency to invest in, even at current prices. If you're looking to buy or trade XRP, Bitcoin or any other altcoins, StormGain is the best place to start.

StormGain is an all-in-one crypto trading platform that offers 24/7 access to the most popular digital assets, including tokenised stocks and indices, as well as cryptocurrencies, via a fast, easy-to-use mobile app or website. Extra features such as built-in trading signals and educational resources make StormGain useful for beginners and experts alike.

It only takes a few seconds to register with StormGain and start building wealth for the future. Sign up now and start trading today or open a demo account to see what StormGain can do for you!

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