Classifying XRP as a commodity could mean Ripple wins its case against the SEC, which some traders may consider bullish for the token.
Bitcoin (BTC) showed signs of resilience Wednesday, shedding tremors from regulatory action against crypto exchange Binance to recover above the key $28,000 level.
XRP tokens jumped for a second straight day, adding 11% in the past 24 hours. They were buoyed by speculation that the classification of bitcoin and ether (ETH) as commodities in the U.S. Commodity Futures Trading Commission (CFTC) suit against Binance might mean XRP tokens are classified as commodities as well. That might hurt the U.S. Securities and Exchange Commission (SEC)’s case against Ripple, which says the tokens are securities. Classification as a commodity could mean Ripple wins the case – which some traders may consider bullish for XRP.
Other tokens also rallied. Ether rose 4% as Ethereum developers confirmed the Shapella upgrade, a fundamental release, for April 14. The upgrade will allow ether stakers to withdraw tokens for the first time, among other network improvements such as improved transactional fees.
Cardano’s ADA jumped 8%, bnb tokens (BNB) recovered 1.9%, erasing some of this week’s losses, and Polygon’s MATIC gined 7% on the introduction of its zero-knowledge Ethereum Virtual Machine in what may become one of 2023’s hottest blockchain trends.
XRP, however, may dip in coming days, some on-chain analysis suggests.
Data from on-chain analytics tool Santiment cited by FxStreet shows that transactions “in profit” have reached a 19-month high, suggesting traders could lock in recent gains and contribute to falling prices.