Ripple’s native coin XRP traded at 4.7% higher than the day before despite the slump other top-performing cryptos are seeing. XRP was trading at $0.46 at press time on Friday.
This surge came despite the market-wide slump that every other cryptocurrency, with the biggest and most popular crypto Bitcoin trading 4.5% lower than its previous day’s level. Regardless, Bitcoin is still trading at a respectable $47,133.27. Meanwhile, the second-largest cryptocurrency, Ethereum, was also down by 4.15% at $1,484.48.
Caption: Ripple XRP is performing well despite the recent crypto market slump.
However, the reason for XRP’s great performance is unclear. Notably, Ripple Labs Inc, the company that owns XRP, is currently in a legal dispute against the United States Securities and Exchange Commission for allegedly selling their native token as an unregistered security.
Most recently, the company also said in a court filing on Thursday that the US SEC is cherry-picking among cryptocurrencies. The company claims that it is unfair for XRP to be classified as a security when Bitcoin and Ethereum are not despite the same regulations applying for these two as well.
The US SEC announced their intent to file the said lawsuit in December of 2020. Since then, Ripple XRP has seen a string of delistings from major cryptocurrency exchange platforms and partnership cancellations, most notably from MoneyGram.
The Ripple top executives Brad Garlinghouse and Chris Larsen were also singled out by the SEC because of their key role in the alleged illegal sales of the XRP. Their legal teams have filed Motions to Dismiss this week as well.
However, a possible reason for the recent performance of the XRP maybe its announcement that it is developing a private blockchain that will support a central bank digital currency. The company alludes to government-backed assets bound to emerge as the reason for this move.
Regardless of the reason, this 4.7% growth was welcomed by the XRP community with open arms, especially after everything the coin has gone through in the last few months.