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Binance US Shares XRP Insights Following Ripple Court Victory; Is an XRP ETF Ahead?

Published

1 month ago

August 15, 2024

Binance US has shared an overview of XRP and this has caused a new wave of interest in the cryptocurrency following Ripple’s case against the U.S Securities and Exchange Commission.

The update on the platform contained essential details on XRP, including its background, the technology behind it, and its ability to handle high volumes that have raised more questions on the possibility of an XRP ETF.

Binance US Reveals XRP Origins and Technology

According to an X thread, Binance US noted updates on the Ripple token, including its creation in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto. The exchange also confirmed that the cryptocurrency uses the XRP Ledger Consensus Protocol which is quite different from the normal proof of work system used by Bitcoin.

Get a quick scoop on $XRP with these fast facts. pic.twitter.com/MYzgvXET4S
— Binance.US 🇺🇸 (@BinanceUS) August 14, 2024

Moreover, Binance US pointed out that the XRP Ledger has the capacity to handle 1,500 transactions per second, showcasing scalability and efficiency.

These insights were released only a few days after Ripple obtained a legal victory against the SEC, a key factor in reviving hope in the community. The update by Binance US is in line with the increasing legal perspective on XRP.

Ripple Court Victory and Market Reaction

The court stated on August 7 that the sales of XRP by Ripple to retail investors through the exchange were not in violation of the federal securities laws. After the decision, the price rose by more than 30% and touched levels last seen in April. Although this rally has encountered resistance, the overall sentiment towards the cryptocurrency remains bullish.

Moreover, according to a Coingape analysis, the XRP price has shown a bullish flag which is setting the stage for a bullish rally.

In addition, data from Santiment indicates a decline in supply on exchanges, suggesting that investors are increasingly holding onto their assets in anticipation of further price appreciation. This trend is complemented by a noticeable uptick in retail accumulation, particularly among holders of smaller amounts, even as some larger holders have reduced their positions.

Speculation Over XRP ETF Grows

In light of these developments, speculation about the launch of an XRP ETF has intensified. Bitnomial Exchange’s recent announcement regarding the introduction of XRP/USD futures contracts has further fueled these discussions.

The contracts, which are to be physically settled and margin-based, reflect the value of 100,000 XRP units. This move is seen as a critical step toward enhancing the accessibility and liquidity in the market.

Consequently, the conclusion of Ripple’s legal battle with the SEC has reinforced the cryptocurrency’s standing, paving the way for regulatory approval of an ETF. As regulatory clarity continues to solidify, the possibility of an ETF launch seems possible.