XRP’s capitalization fell from USD 22 billion to USD 13 billion within a month. The price of Polkadot has increased by more than 70% in the last week.
Ripple’s XRP remains bearish in the market and has lost its place as the fourth most traded cryptocurrency. Polkadot (DOT) now occupies that place, having recently exceeded a market capitalization of USD 15 billion.
In recent days, XRP has depreciated by more than 10% while the price of DOT has increased by 77.2%. That situation has earned the latter the new rank among the cryptocurrencies with the highest capitalization, according to data from CoinGecko.
Even though DOT had been flirting with the fourth place, the confirmation of the change occurred in a matter of hours. The market price of the Polkadot cryptocurrency has risen by more than 21% within just one day. For that reason, XRP’s total capitalization of just over USD 13 billion remains behind.
In that way, Ripple’s cryptocurrency maintains a negative trend that has led it to lose almost half of its price in the last month. The lawsuit that the US Securities and Exchange Commission (SEC) filed against the XRP issuing company caused this disaster.
In December, the SEC sued the company and its co-founders for the sale of XRP, since they consider it to be an unregistered security.
When the news appeared, the price of XRP was USD 0.48. At the time of writing this article, each XRP trades at USD 0.28. On the day of the complaint, the price of the crypto asset had already dropped by 30%. XRP’s market capitalization went from above USD 22 billion to just above USD 13 billion in the same period.
Exchanges and Investment Funds Separate from Ripple
The lawsuit that the SEC filed against Ripple last December led to an unleashed wave of rejection of XRP on exchanges. In a matter of a few days, dozens of those platforms announced that they would delist XRP and mutual funds. They would also liquidate positions, so they requested their customers to withdraw their funds in the said currency.
On December 24th, Bitwise announced that it would liquidate its position in XRP, equivalent to almost 4% of its portfolio. Later, exchanges markets such as OKCoin, Coinbase, Bittrex, Crypto.com, Binance, or eToro also withdrew it.
Crypto investment fund Grayscale made the latest decision in this wave of rejection of XRP. Institutional cryptocurrency investors consider it one of the most important on the global scale. It withdrew its positions in XRP, but its Bitcoin fund grew by USD 3,000 million during the last three months of 2020.
Several days ago, a group of XRP investors filed a petition with a US court for the modification of the SEC’s complaint. They requested the agency not to consider their XRP holdings as securities. They are waiting until the court determines whether the Ripple crypto is a security or a cryptocurrency.
By Alexander Salazar