Most top cryptocurrencies have been flat, but XRP has dished up a 6 per cent gain, leading to predictions traders will soon be hungry for more.
The XRP token is issued by the Ripple firm, a blockchain-based digital payment network and protocol, and has pumped by about 6 per cent over the past 24 hours.
It’s also up 12 per cent over the past week and nearly 20 per cent over the past fortnight – significant gains for a token with one of the largest market cap valuations ($US27.2 billion).
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Is there a reason for this surge? It’s a bit of an old story, this one, and it’s been wheeled out every time XRP’s gone on a little run over maybe the past six months or more.
Ripple is in an ongoing legal battle with the US Securities and Exchange Commission (SEC) over a securities violation accusation by the regulator.
The growing hope is that the SEC v Ripple lawsuit will be resolved soon, ending in a settlement that doesn’t, in fact, legally prove XRP hit the market as an unregistered security when Ripple sold about $US1.3 billion of the tokens about 10 years ago.
One prominent Ripple/XRP-friendly lawyer, John Deaton, is certainly bullish on a favourable Ripple outcome, and believes crypto traders and investors will soon be swept up in FOMO for the XRP token, once it hits $US2 again.
(Note, it’s a long way off that figure at $0.52. The coin’s all-time high was $US3.40, reached more than five years ago now.)
#XRP sits at .48 cents and itâs crazy to think about how many people, who refuse to buy it now, are going to buy it over $1. Whatâs even more crazy is that fomo wonât likely kick in until $2.
— John E Deaton (@JohnEDeaton1) May 29, 2023
Deaton also proffered his thoughts on the recent federal judge ruling that allows the use of what’s known as the “Hinman speech” in the case, along with relevant internal SEC communications regarding the contents of the speech.
That refers to a 2018 speech made by a former prominent SEC director, William Hinman, in which he noted that Ethereum (ETH) was not a security – a potentially strong precedent for the rest of the crypto industry.
Deaton, and many other XRP fans besides, seems to think it could be a significant moment and turning point in favour of Ripple in the case.
Hereâs what I can practically guarantee: if Hinmanâs speech had been screened/cleared or approved by the SEC Ethics office we would have heard about it long ago. Being able to say the Ethics Chief cleared my speech would act as a proverbial get of jail free card. https://t.co/8TQh0FlC7Q
— John E Deaton (@JohnEDeaton1) May 29, 2023
Still, not every observer seems to be down with Deaton on his bullish XRP thesis. Right, “Chinese Batman”?
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Top 10 overview
With the overall crypto market cap at $US1.21 trillion at noon Wednesday (AEST), up about 0.6 per cent since the same time Tuesday, here’s the state of play among top 10 tokens – according to CoinGecko.
Source: CoinGecko
Regarding what’s been going on with Bitcoin just lately/this week, we grabbed a few takes from Josh Gilbert, a market analyst with eToro.
“Bitcoin has surged to a two-week high on the back of a potential deal struck by Republicans and Democrats to avoid a US debt ceiling default,” noted Gilbert, adding: “Having traded below or around $27,000 for the past two weeks, bitcoin surged early this week to close to $28,000 as investors bought the news of a potential deal to avoid default disaster. The crypto asset is still below recent levels, however, as markets continue to tread carefully.”
Regarding both BTC and ETH, Gilbert noted that it remained to be seen whether either major crypto asset could truly begin to see some sustained momentum.
“The debt ceiling issue has certainly been leaving markets uncertain for several weeks now,” he said, “but there are still big questions in play around wider macroeconomic developments around interest rates and inflation.”
Bitcoin Ordinals pass 10 million
Gilbert also pointed to “the biggest phenomenon on the bitcoin blockchain in 2023” – Ordinals, which have now passed 10 million inscriptions.
To understand what that means, we recommend reading this Kraken-led piece on the subject, or this recent Apollo’s Alpha.
“The process has underlined that innovation is still possible on the world’s largest blockchain and crypto asset,” said Gilbert.
“Resolutions and new initiatives have popped up to cure some of the issues, a testament to the dynamism and ingenuity of many developers and market participants in the blockchain.”
China narrative kicking in?
Meanwhile, there are some tokens in the lists further below that have been dubbed “Chinese coins”, based on their popularity with Chinese traders, and/or because they have Chinese origins or connections.
Coins such as Filecoin, Conflux, VeChain and Quant, for instance.
Regarding the potential for China to kickstart a crypto bull run, which is still a stupendously speculative idea at this stage, Gilbert said: “The implications of a potential policy shift from the major Asian power could be profound for the crypto market if a loosening of control is on the cards.
“This is however a big ‘if’ – we have no real confirmation of the Chinese government’s policy thinking on crypto. However, we do now have some insight into Web3 thinking as it has just published a white paper. The white paper recognises the relevance of Web3 as a future trend, but there is still much left to be guessed at in terms of crypto markets.”
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Uppers and downers
Some of the biggest 24-hour gainers and losers at noon Wednesday (AEST). Stats based on CoinGecko.com data.
PUMPERS (11-100 market cap position)
- The Graph (GRT), (market cap: $US1.21 billion) +6.2 per cent
- Quant (QNT), (mc: $US1.7 billion) +5 per cent
- Filecoin (FIL), (mc: $US2.06 billion) +4.5 per cent
- Aptos (APT), (mc: $US1.73 billion) +3.9 per cent
- Injective (INJ), (mc: $US616 million) +3.4 per cent
PUMPERS (lower, lower caps)
- Linear (LINA), (market cap: $US134 million) +38.7 per cent
- Flux (FLUX), (mc: $US190 million) +24.8 per cent
- SelfKey (KEY), (mc: $US51 million) +22.3 per cent
- HAVAH (HVH), (mc: $24 million) +19.3 per cent
- Kripto (KRIPTO), (mc: $45 million) +17.9 per cent
SLUMPERS (11-100 market cap position)
- Pepe (PEPE), (market cap: $US540 million) -10.4 per cent
- IOTA (MIOTA), (mc: $US559 million) -5.8 per cent
- Optimism (OP), (mc: $US490 million) -4.1 per cent
- Frax Share (FXS), (mc: $US484 million) -3.6 per cent
- Sui (SUI), (mc: $US532 million) -3.2 per cent
SLUMPERS (lower, lower caps)
- Refund (RFD), (market cap: $US22 million) -39.3 per cent
- Decimal (DEL), (mc: $US87 million) -35.9 per cent
- Findora (FRA), (mc: $U28 million) – 23.3 per cent
- Ben (BEN), (mc: $US47 million) -22.7 per cent
- Polymath (POLY), (mc: $US126 million) -12.3 per cent
Around the blocks
Some pertinence and randomness that stuck with us on our morning moves through the Crypto Twitterverse.
The end stage of the U.S. is basically here.
Unlimited debt ceiling, infinite amount of money to be printed as there’s no way out of this except for the money printer.
Buy hard assets.
Buy #Bitcoin & #Ethereum.
Have Gold, Silver and Platinum in your portfolio.— Michaël van de Poppe (@CryptoMichNL) May 30, 2023
This content first appeared on stockhead.com.au
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