XRP Network Sees Surge in Active Wallets: Positive Price Signal?
The XRP network is experiencing a significant surge in daily active wallets. Many analysts consider this a positive indicator for XRP's price.
XRP Network Sees Surge in Active Wallets: Positive Price Signal?
Spike in Active Wallets
Data from Santiment reveals that on May 28 and 29, the XRP network saw its second and third-largest spikes in active wallets since the peak on March 18.
😮 #XRPNetwork has now had its 2nd & 3rd largest address activity spikes of all time these past 2 days. A mild +4% decoupling has emerged between $XRP & the #altcoin pack, and if history repeats itself from the March 18th activity spike, it could be more. https://t.co/601m4SYUOy pic.twitter.com/AF8k4qtPQv
— Santiment (@santimentfeed) May 30, 2023
Notably, following the surge in active wallets on March 18, XRP's price increased dramatically by over 60%. This signal has led analysts to anticipate a similar price pump as the number of active wallets shows positive trends.
Source: Santiment
The reasons behind the resurgence in XRP's active wallets are unclear. However, it could be attributed to several positive internal project developments, including:
- A significant increase in XRP sales revenue for Q1 2023;
- The acquisition of crypto custody firm Metaco;
- Selection by the Hong Kong government to participate in the e-HKD pilot program;
- The ongoing resolution of the SEC lawsuit against Ripple.
SEC Lawsuit Against Ripple Approaching Resolution?
In December 2020, the SEC sued Ripple Labs Inc., the parent company of XRP, and its founders, Chris Larsen and Brad Garlinghouse, alleging violations of securities laws. The SEC contends that XRP qualifies as a security and that Ripple failed to adhere to investor protection regulations when issuing and selling XRP.
Ripple disputes these claims, asserting that XRP is a currency and not subject to SEC regulation.
The litigation has continued since then, involving legal maneuvers and debates over XRP's classification and whether Ripple violated securities laws. This dispute has significantly impacted XRP's price, with many exchanges and projects removing support for XRP during the legal battle.
However, recent updates suggest a favorable shift toward Ripple. Observers hope that Ripple can leverage the new legal precedent set by the New York court in the Voyager case to strengthen its position against the SEC.
Additionally, in a recent interview, Ripple Labs CEO Brad Garlinghouse hinted that the lawsuit with the SEC might conclude in the coming weeks, bringing hope to XRP enthusiasts.
XRP has increased by 5% over the past 24 hours, trading around $0.50.
1-Hour Chart of XRP/USDT on Binance as of 3:40 PM on May 30, 2023
