XRP price crash by 20% wipes out SEC profits and reduces market capitalization by $5 billion
Date: 2023-08-18 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Ripple's XRP has lost more than $5 billion of its market capitalization after Thursday's overnight market crash liquidated $1 billion from crypto traders.
XRP is among the top 10 losers for Aug. 18, falling more than 20 percent during the reporting period to $0.473. This is the biggest drop among the top 50 crypto assets by market capitalization.
The sharp price change has seen its market capitalization fall to around $25 billion from its previous peak of $31 billion, as evidenced by CryptoSlate data.
XRP's 24-hour drop negates Ripple's gains
A drop of more than 20% has wiped out almost all of the gains made by the XRP price since Ripple scored a partial victory in its case against the U.S. Securities and Exchange Commission (SEC).
On July 13, the day before Judge Analisa Torres ruled that programmatic sales of XRP could not be classified as securities, the token was trading at $0.4757.
However, its value jumped more than 90% on July 14 after Judge Torres' favorable ruling became public and several U.S. cryptocurrency exchanges, including Coinbase and Gemini, began re-listing the digital asset.
Since then, the price of XRP has gradually declined, dropping more than 37% of its value over the past month, and recent market action has catalyzed its return to less than $0.50, just a few pennies less than before Ripple's victory levels.
Meanwhile, XRP rebounded to $0.51048 at the time of publication.
Other affected assets
The significant decline in XRP was part of a broader trend, with bitcoin (BTC) and other major digital assets also experiencing a significant drop in value during the reporting period.
After weeks of limited price movement, bitcoin lost 7.7% in 24 hours and traded at $26,443, its lowest value in more than two months.
Ethereum was also not spared from the market situation as it fell below $1,700 for the first time since June, down about 6% to $1,691 at the time of publication.
Cryptocurrency market capitalization has dropped significantly by 32.24% over the past 6 hours, dropping from $1.15 trillion to $1.06 trillion. This rapid decline has led to an estimated $100 billion in losses across the market.
