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Massive XRP price surge adds $3 billion to its worth in a week

Massive XRP price surge adds $3 billion to its worth in a week

Crypto investors have been enjoying a feeling of relief in the past few months amid the broader market rebound after one of the worst-ever downturns for the industry in 2022. 

One crypto token that has been attracting attention, in particular, is XRP, despite the uncertainty around its regulatory status as to whether it is classed as a security or not, while Ripple continues to fight a legal battle against the US Securities and Exchange Commission (SEC). 

Over the past week, XRP price surged nearly 12%, finally exceeding the $0.5 threshold. At press time on Wednesday, May 31, the cryptocurrency was changing hands at $0.51, up 1.58% on the day. 

At the moment, XRP is experiencing a support level of $0.48689, while the resistance threshold stands at $0.54383.

XRP 1-week price data. Source: Finbold

As a result of the price surge, XRP added roughly $3 billion to its total market cap, from $23.60 billion to $26.51 billion. 

XRP 1-week market cap chart. Source: CoinMarketCap

Interestingly, earlier this week, prominent legal expert John E. Deaton voiced his astonishment about how many crypto investors are ignoring the opportunity to acquire XRP at a relatively low price of $0.48, adding as he expects FOMO to kick in at around $2 after the lawsuit is resolved.

Why is XRP rising? 

There are several factors that contributed to the XRP’s latest surge. Most recently, the sixth-biggest cryptocurrency by market cap stole the market’s attention on May 30 after a significant spike in its network activity.

The blockchain recorded an unexpected jump in the number of daily active addresses (DAA) to 490,000 on May 27, marking the second-biggest address activity on the network. The increase came just a few months after DAA surged to an all-time high of 880,000. 

Before that, XRP’s price climbed after Ripple secured a significant victory in its legal dispute against the SEC. Specifically, on May 17, US District Judge Analisa Torres stopped the SEC in its attempts to seal the so-called ‘Hinman documents’ – which refer to the securities regulator’s internal communications that include comments by former Division Director William that Bitcoin (BTC) and Ethereum (ETH) were not securities.

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