17th January 2025 – (New York) XRP, the cryptocurrency developed by Ripple Labs, has recently encountered significant market volatility, resulting in over $37 million in liquidations within a mere 24 hours. Data from Coinglass indicates that liquidated long positions accounted for approximately $18.02 million, while short positions contributed around $19.80 million. This turmoil has sparked discussions regarding the underlying factors driving these sharp price fluctuations and their implications for XRP’s overall market performance.
XRP primarily functions as a digital currency for swift and cost-effective international payments. Ripple Labs has engineered a decentralised platform that enables financial institutions to execute cross-border transactions almost instantaneously, with minimal fees. This utility positions XRP as a crucial bridge currency, enhancing liquidity between various fiat currencies and solidifying its role within the global payments framework.
Despite its technological benefits and extensive use, XRP is not without challenges that fuel its price volatility. Chief among these are regulatory pressures, particularly stemming from an ongoing legal confrontation with the U.S. Securities and Exchange Commission (SEC). The SEC’s lawsuit, initiated in December 2020, alleges that XRP is a security and was sold unlawfully as such. Ripple maintains that XRP is a cryptocurrency, thereby exempt from SEC oversight.
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