XRP stayed stagnant despite a bullish run in the past few days, and the token’s market capitalization took a hit because of it. The crypto has been overtaken by Cardano (ADA) and Polkadot (DOT). Binance coin also overtaken the coin in terms of valuation.
Ripple XRP has fallen out of the list of the top five cryptocurrencies in terms of market capitalization. This may have been caused by the dwindling investor confidence and the uncertain future of the coin. The coin currently sits at number seven on the top-ranking after being overtaken by Binance Coin (BNB), Cardano (ADA), and Polkadot (DOT).
Ripple XRP has repeatedly challenged Tether (USDT) for the 3rd spot in the past few years. However, the recent volatility of the price and its sideways movement has not done the token any favors, especially during a huge market-wide rally for all the top coins in the market.
Photo Credits: Pixabay | Ripple XRP crypto coin physical visualization
This stagnation may have been caused by the hot water Ripple Labs finds itself in ever since the US Securities and Exchange Commission (SEC) filed a lawsuit against the company and two of its executives. In a public announcement issued by the SEC on December 22, 2020, the commission alleges that Ripple raised funds in an unregistered security offering worth north of $1.2 billion. Two of its highest-ranking executives, Brad Garlinghouse and Christian Larsen, reportedly also personally made sales worth over $600 million.
However, some speculative traders do not see the token falling out of the top 10 list anytime soon. Earlier this month, a group of trades called for XRP investors to buy and hold the cryptocurrency. A now-deleted Reddit post on r/Ripple claimed that buying pressure would effectively push the digital asset to new resistance levels. It should also be noted that despite this stagnation, the price of XRP has more than doubled since last month.