In an unexpected event, on December 29th, Litecoin became the fourth largest cryptocurrency by passing Ripple (XRP). Analysts believe the main reason is the recent Ripple’s decline. As reported previously, Litecoin Left Ripple Behind By Market Cap On December 29th but Ripple reclaimed its rank.
Litecoin Left Ripple Behind but Ripple Reclaimed its rank
Few weeks ago, Ripple native token Skyrocketed and reached almost $1. However, this uptrend did not last long and suddenly stopped since SEC has pressed charges against Ripple foundation.
As reported previously, XRP is facing serious problems following the United States Securities and Exchange Commission lawsuit against Ripple Foundation. Earlier, Tether had left XRP behind and became the third largest digital currency and the condition got worse as Litecoin left XRP behind by market cap. XRP price crashed almost 60% due to negative news. On the other hand, Litecoin experienced a great month and could gain up to 55 %. This growth increased its total market cap to $8.14 billion On 29th Dec. According to CoinGecko data, at that time XRP had a total market cap around $7.9 billion. The day after, Ripple reclaimed its place by increasing its total market cap to $9.5 billion and became the fourth largest crypto again.
SEC claimed that Ripple company has offered unregistered securities worth $1.3 billion and has considered XRP as a security. Ripple founders also said they would defend company’s stance and benefits, but the firm has already been damaged.
Following the SEC news, some major crypto exchanges took reactions and delisted XRP on their platforms. Coinbase was one of the well-known exchanges that announced it will stop all activities related to the XRP trading. OKCoin, Bitstamp and Bitwise has also halted XRP trading And it affected the price to suffer even more.
Although some experts believe that XRP is not a security, this problem could be solved only in court and may take several years to be proven. It seems that Ripple should do its best to defend its native token and stance in the crypto market in order to survive.